Question: 4 . Why is it important to have a separation between Central Banks and the government? Is it overly cynical to imagine that politicians would
Why is it important to have a separation between Central Banks and the government? Is it overly cynical to imagine that politicians would use monetary policy to get elected or reelected? Regrettably it is because politicians cannot be trusted to do the right thing with monetary policy and that they will use policy like low interest rate to make themselves popular and win elections.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
