DESCRIBING CENTRAL BANK governors as being seen as “puppets” and “creatures” of the Minister of Finance, economist Professor Michael Howard says dismissed Governor Dr DeLisle Worrell (below) should have resigned and not allowed himself to be fired.
Howard, professor emeritus at the Cave Hill Campus of the University of the West Indies, said Worrell must “blame himself fully for his ignominious firing by the Minister of Finance”. 
He told the DAILY NATION yesterday: “Dr Worrell failed to realise, or forgot that central banks in developing countries are not autonomous or independent financial institutions. Moreover, central bank governors in these countries are usually seen as creatures or puppets of the Minister of Finance and are treated as such.”
Howard said Worrell made a “catastrophic error in 2013” by not insisting publicly that the Barbados Government should go to the International Monetary Fund to borrow money when the reserves started to decline and the productive sectors were stagnant.
“This is the main reason why we are in this financial mess now. The money printing which Government requires of the Central Bank can never be a substitute for foreign borrowing and a reduction in public expenditure when reserves are declining.”
He said he was not surprised about Worrell’s firing, having listened to the axing of former Governor and colleague Winston Cox by former Prime Minister Owen Arthur.
“As an independent economist and thinker, I would never be a puppet or creature of any Minister of Finance. I also believe that central bank governors in these small fragile economies should resign when their advice is ignored.” (TS)