Studies by economists have tended to show that countries with more independent central banks have
A) more inflation.
B) less inflation.
C) higher unemployment.
D) lower unemployment.

Question

Quizplus · Accepted Answer

Studies by economists have consistently shown that countries with more independent central banks have lower inflation rates. This is because when a central bank has more independence, it is better able to make decisions based on economic factors rather than political pressures. These decisions may include raising interest rates or adjusting monetary policy to maintain price stability. Therefore, having a more independent central bank helps to control inflation.

Studies by Economists Have Tended to Show That Countries with More