Generally, it is believed that central bank independence is
preferred. But what exactly does central bank independence mean?
Comment on this question by examining the types of independence.
Which is NOT an argument in favor of central bank
independence:
A. It avoids the time inconsistency problem
B. It supports fiscal discipline
C. It puts experts in charge of monetary policy
D. It allows the Fed to implement unpopular policies for the
greater good
E. It fosters the synchronization of monetary and fiscal
policy.
Group of answer choices
E. It fosters the synchronization of monetary and fiscal
policy.
A. It avoids the time inconsistency problem
B. It supports fiscal...
Explain the pros and cons of the independence of a central bank.
Should the Federal Reserve be independent from the United States
government? Why or why not?
Critics of Federal Reserve independence say that the
central bank and government must be tightly coordinated in their
economic policy and that central banks must have regulatory
oversight. Do you agree or disagree? Why?
Critics of Federal Reserve independence say that the
central bank and government must be tightly coordinated in their
economic policy and that central banks must have regulatory
oversight. Do you agree or disagree? Why?
How independent is the central bank? What factors contribute to
and what factors work against independence? Discuss arguments for
and against the independence of the central bank.