Webinar: What central banks should and shouldn't do, with John H. Cochrane
Central bank independence in monetary policy was hard fought and desperately needed. The deal was simple. Central government would stay out of a Reserve Bank’s way as it dealt with monetary policy, and the Bank would not abuse its independence in pursuing other agendas.
That deal is fraying badly, if it has not fundamentally broken. If central bank independence in monetary policy is lost as consequence, rebuilding the institutions will be costly.
John H. Cochrane, a Senior Fellow at Stanford University's Hoover Institute joined Dr Eric Crampton to discuss the importance of central bank independence.