We need some better explanation for why governments that are supposedly only concerned with short term political gains create central bank institutions whose sole purpose is to raise long-term social welfare.

Question

Quizplus · Accepted Answer

While governments may be primarily focused on short-term political gains, they also recognize the importance of ensuring the long-term stability and welfare of their economy. Creating a central bank that is independent and focused on maintaining price stability and economic growth can help achieve this goal. Additionally, a stable and healthy economy can be politically beneficial in the long term, as it can help secure the government's popularity and legitimacy. Therefore, it is not surprising that governments would create central bank institutions with the objective of raising long-term social welfare.

We Need Some Better Explanation for Why Governments That Are