Evidence shows that the more independent a central bank is, the higher the inflation the country experiences.

Question

Quizplus · Accepted Answer

Evidence actually suggests the opposite - that the more independent a central bank is, the lower the inflation rate tends to be in a country. This is because an independent central bank is able to set monetary policy without political pressure or interference, which allows for more consistent and predictable policies that prioritize low inflation and stable economic growth.

Evidence Shows That the More Independent a Central Bank Is