2 Comments
User's avatar
Nadim (Abolish NDIS and EPBC)'s avatar

The fact that central bank independence allows governments to borrow more at lower borrowing costs is not remotely surprising. This is literally why England was able to win so many wars.

Also if central bank independence isn't possible in the 21st century we should simply go back to free banking which is a much more moderate risk strategy as opposed to the inherently high risk strategy of central banking.

mortmain's avatar

If Central banks strive for independence then why do interest rates fluctuate so much? Are they supposed to keep prices stable? Shouldn't the price of money be stable? What economic events in the last twenty years required any long-term monetary response to those events?