Greater central bank independence is positively related to ________.

Question

Quizplus · Accepted Answer

Greater central bank independence is positively related to the ability to fight inflation. This is because central bank independence allows them to take decisions without external interference, particularly on setting monetary policy, which helps in controlling inflation. However, central bank independence does not have a direct relationship with unemployment, the length of terms of Governors on the Board of Governors, or the level of GDP.

Greater Central Bank Independence Is Positively Related to ________