Economist Stanley Fisher defined two types of independence of central banks: ________ and ________ independence.

Question

Quizplus · Accepted Answer

According to economist Stanley Fisher, the two types of independence of central banks are instrument independence, which refers to the ability of a central bank to set monetary policy instruments, and goal independence, which refers to the ability of a central bank to set and achieve monetary policy goals. Option B is incorrect because policy independence is not a term used by Fisher, and option C is incorrect because political independence is not one of the types of independence identified by Fisher. Option D is also incorrect because parliamentary independence is not a term used by Fisher.

Economist Stanley Fisher Defined Two Types of Independence of Central