A central bank that is independent of the administration is desirable since

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Quizplus · Accepted Answer

All of the above reasons are valid reasons for having an independent central bank. Independence decreases the likelihood of political cycles, which occur when elected officials attempt to manipulate monetary policy for their own political gain. Countries with independent central banks tend to have lower inflation rates because the central bank can focus solely on controlling inflation without political interference. Independence also mitigates the problem of dynamic inconsistency, which occurs when policymakers change their minds about policy after the fact. Finally, independence lends more credibility to monetary policy because it shows that the central bank is not influenced by political pressures.

A Central Bank That Is Independent of the Administration Is