The expected benefits of central bank independence include avoidance of ________.
A)Ben Bernanke
B)public scrutiny of central bank policies
C)the time-inconsistency problem
D)serious policy errors

Question

Quizplus · Accepted Answer

The time-inconsistency problem is avoided with central bank independence, as it helps in preventing short-term political pressures from influencing monetary policy, which could lead to inflationary policies for political gains.

The Expected Benefits of Central Bank Independence Include Avoidance of ________