Based on empirical evidence, countries with more independent central banks have been found to have lower inflation rates. This is because independent central banks are better able to make decisions based on economic factors rather than political considerations, leading to more stable monetary policy and lower inflation.

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Generally

Question 86

Multiple Choice

Generally,

A) countries with the most independent central banks have the lowest inflation rates.
B) countries with the least independent central banks have the lowest inflation rates.
C) countries without central banks have the lowest inflation rates.
D) the degree of independence of a country's central banks has little to do with its inflation rate.

Correct Answer: