The Anguish of Central Banking

“The Anguish of Central Banking” is a widely cited lecture-essay by Arthur F. Burns, delivered after his tenure as Chairman of the Federal Reserve, in which he examines why central banks often fail to control inflation despite having the technical tools to do so.

Drawing on his experience leading the Fed during the Great Inflation of the 1970s, Burns discusses the political, social, and institutional forces that limit monetary policy, arguing that central bankers operate under intense pressures that can undermine sound policy and leave them anguished over outcomes they cannot fully control.