The Art of Monetary Policy: Lessons from Sun Tzu for Central Banks

By Kristin J. Forbes (MIT Press, 2026). Central banks are navigating a world of higher debt, tightly interconnected markets, and rising geopolitical tensions. How might they respond effectively? In "The Art of Monetary Policy," Forbes draws on the writings of Chinese military strategist Sun Tzu to suggest modern principles for central banks, including preparing for the next financial battle, establishing a strong tactical position, combining weapons and methods, and modifying and varying tactics to maintain flexibility.