What is Central Bank Independence?

What is Central Bank Independence?

IntroductionEconomists, policymakers, and business leaders widely regard central bank independence as a desirable feature of monetary-institutional design. What is central bank independence, and why is it valuable? How has central bank independence worked in practice? And how should we think about the independence of the United States’ central bank, the Federal Reserve (“the Fed”)? This explainer answers these questions for interested non-expert…