Peru's central bank is in a state of flux. Its governor, Richard Webb, has abruptly resigned, lamenting to CentralBankNet that the central bank is caught up in "an upside down world". Webb's flight was prompted by unworkable differences between himself and the board, and although press reports casually cite administrative problems, CentralBankNet has discovered that there is more at stake. The episode illustrates problems inherent in an independent central banking framework.

For Webb, the