Why do most economists believe that it is important for a country's central bank to be independent of the rest of the country's central government?

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Peyton Downs

16 October, 01:58

Why do most economists believe that it is important for a country's central bank to be independent of the rest of the country's central government?

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Bub · Answer 1

This way, the bank is less likely to be interfered with by the central government. It can, at the very least, give an appearance of being impartial with its monetary policy and its decisions to print money. If the bank is not independent, the view can proliferate that there are decisions that are being made that would be in the favor of the government or the parties in power at the time.