The Main Rationale for Central Bank Independence Is That

question 5

Multiple Choice

The main rationale for central bank independence is that

• A)otherwise it would be hard to attract competent people to work for the central bank.
• B)if the central bank were not independent, the government would be too bureaucratic.
• C)in counties like the United States, this independence helps reduce the conflict between state and federal government.
• D)this independence prevents the government from engaging in policies that, though beneficial in the short run, are harmful in the long run.
• E)politicians find monetary policy too boring.

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