Why political meddling with central banks is a terrible idea
is increasingly at risk around the world.
Central bank independenceis increasingly at risk around the world.
Central bank independenceFrancesco Saraceno | Munchau recently argued that central banks’ choices are increasingly political in nature, especially if their mandate is broad, as is the case for example of the Fed. His argument is that a broad mandate implies tradeoffs, and as such it does not go well with central bank independence.