The main rationale for central bank independence is that
A)otherwise it would be hard to attract competent people to work for the central bank.
B)if the central bank were not independent, the government would be too bureaucratic.
C)in counties like the United States, this independence helps reduce the conflict between state and federal government.
D)this independence prevents the government from engaging in policies that, though beneficial in the short run, are harmful in the long run.
E)politicians find monetary policy too boring.

Question

Quizplus · Accepted Answer

Central bank independence prevents governments from engaging in policies that may be popular in the short run but ultimately harmful in the long run. This allows for more stable and consistent monetary policy, which can lead to better economic outcomes.  A, B, C, and E are not accurate rationales for central bank independence.

The Main Rationale for Central Bank Independence Is That