Political scientists and economists argue that truly autonomous central banks that are subject to minimal political influence are more likely to be:
A) less credible in their fight against inflation.
B) more credible in their attempts in reviving a troubled economy.
C) more credible in their fight against inflation.
D) less credible in their fight against unemployment.

Question

Quizplus · Accepted Answer

Political scientists and economists argue that truly autonomous central banks are able to focus on their core mandate of maintaining price stability, which enhances their credibility in the fight against inflation. With minimal political influence, central banks can make decisions based solely on economic principles, which are more likely to be effective in controlling inflation.

Political Scientists and Economists Argue That Truly Autonomous Central Banks