## The Transformative Central Banker

## Source details

**Canonical URL:** [The Transformative Central Banker](https://www.imf.org/en/publications/fandd/issues/2026/03/in-the-trenches-the-transformative-central-banker)

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## Bibliographic details
- Authors: Jeff Kearns
- Published: February 17, 2026

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### Overview
- Bank of Korea Governor Chang Yong Rhee argues central banks must adapt to new realities amid broadening economic challenges.
- Rhee became Bank of Korea governor in April 2022 amid a global inflation surge and Russia’s war on Ukraine.
- Publication: F&D Magazine; Author: Jeff Kearns; March 2026.

### Rhee’s view on the central bank’s evolving role
- “Our responsibility cannot be confined to the boundaries of monetary policy alone.” (inaugural address)
- Rhee emphasizes the need to look beyond the traditional inflation-growth trade-off to include financial stability considerations.
- Career background influencing perspective:
  - Education: Seoul National University (economics major), doctorate from Harvard University.
  - Previous roles: academic posts in the United States and Korea; government and international organizations; ADB chief economist; director of the IMF Asia Pacific Department.
- Transition from adviser to decision-maker: as governor he notes, “Now I’m responsible for making a final call, at least on monetary policy, and that carries a lot of weight.”

### Structural challenges highlighted
- Key structural forces cited:
  - Population aging.
  - Diminished globalization and changing global supply chains.
  - Rapidly evolving digital economy.
  - Issues in education and labor markets.
- Specific point on potential growth perceptions and reality:
  - Public expectation: many people view at least 3 percent, even over 4 percent, as a proper growth rate.
  - Governor’s assessment: potential GDP growth rate is now about 2 percent or below.

### Communications and public engagement
- Bank of Korea efforts to broaden outreach:
  - Expanded focus on videos and visualizations.
  - Established a new studio and staff media training.
  - Opened a gift shop.
- Rationale: research should be high-quality and easy for people to read to change perceptions about long-term structural shifts.
- Acknowledged challenge: “When you address structural issues, there are always winners and losers,” making communication and public acceptance difficult.

### Central bank independence and intergovernmental cooperation
- Rhee’s stance:
  - Central bank independence is “very important, especially in achieving price stability.”
  - Independence enabled rapid interest rate increases in 2022 despite unpopularity; he communicated that the mandate is price stability and inflation targeting is the objective.
- Need for cooperation:
  - Central banks also handle financial market stability, act as lender of last resort, and may be involved in resolving bankrupt financial institutions.
  - These functions require communication and cooperation with the government; “This job can’t be done by the central bank alone.”

### Policy implications and recommendations (from Rhee)
- Central banks should:
  - Study a broader range of subjects beyond conventional monetary policy to understand structural drivers.
  - Serve as leading think tanks for their countries, not only as monetary authorities.
  - Improve public communication to explain structural constraints and reset expectations.
  - Maintain independence for price stability while cooperating with governments on financial stability and crisis roles.

### Interview context and notes
- Interview conducted by Jeff Kearns; edited for length and clarity.
- Full interview available via IMF podcasts (as indicated in source text).

*Source: The Transformative Central Banker, F&D Magazine — March 2026.*

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## Content in this bundle

- **The Transformative Central Banker**
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_Source: https://www.imf.org/en/publications/fandd/issues/2026/03/in-the-trenches-the-transformative-central-banker_