Central Bank Independence: It’s Not Only About Interest Rates and Price Stability

Central Bank Independence: It’s Not Only About Interest Rates and Price Stability

Central Bank Independence: It’s Not Only About Interest Rates and Price Stability

Discussions of central bank independence usually centre around monetary policy, specifically the freedom of central banks to use interest rates to tackle inflation. However, as the financial crisis showed, financial stability is also important and this requires robust supervision/regulation of banks.

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