To prevent monetary policy from becoming highly politicized, many countries have

Question

Quizplus · Accepted Answer

Making central banks politically independent is the most effective way to prevent monetary policy from becoming highly politicized. This means that the central bank is free to make decisions based on economic data and not influenced by political pressures or agendas. This helps to ensure stability and predictability in monetary policy, which is essential for a healthy economy. The other options listed would likely result in increased political influence over monetary policy and could lead to instability and uncertainty.

To Prevent Monetary Policy from Becoming Highly Politicized, Many Countries