Countries with more independent central banks have lower inflation rates,but these have come at the expense of greater output fluctuations.

Question

Quizplus · Accepted Answer

While it is true that countries with more independent central banks tend to have lower inflation rates, the evidence does not conclusively show that this comes at the expense of greater output fluctuations. In fact, independent central banks can help stabilize the economy by focusing on long-term price stability, which can contribute to a more predictable economic environment and potentially reduce output volatility.

Countries with More Independent Central Banks Have Lower Inflation Rates,but