Most economists today agree that the central bank should remain independent so that it is insulated from political pressure.

Question

Quizplus · Accepted Answer

The independence of the central bank is generally considered crucial for its effectiveness in controlling inflation, stabilizing the economy, and maintaining financial stability. Political pressures or interference can lead to decisions that prioritize short-term goals over long-term sustainability, undermine the credibility of the central bank, and harm the economy. Therefore, most economists advocate for an independent central bank that operates within its mandate, transparently, and accountably.

Most Economists Today Agree That the Central Bank Should Remain