Research for a number of OECD countries suggests that inflation will be lower
A)the more independent the central bank.
B)the less independent the central bank.
C)if the heads of central banks are chosen by election.
D)when the terms of the heads of central banks coincide with the terms of elected officials.

Question

Quizplus · Accepted Answer

The research suggests that inflation will be lower the more independent the central bank is. This is because an independent central bank is less likely to be influenced by short-term political considerations and more likely to pursue monetary policies that are consistent with achieving long-term price stability.

Research for a Number of OECD Countries Suggests That Inflation