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.
3. What are the functions of a central bank? How is the FED, the
US central bank structured? What tools does the FED use to perform
the functions of a central bank? How do those tools work to
carryout the functions of a central bank?
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...
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.