Independence no substitute for rules-based policy


Milton Friedman framed the discussion of how best to ‘institutionalise’ a central bank more than half a century ago by defining the role and the limits of central bank policy to provide a stable financial and monetary environment – and little has changed that assessment. Despite being anchored in 19th century classical liberalism, Friedman accepted that commodity monetary standards evolve into fiduciary standards that generate a degree of market failure and hence, require governments to “…set an

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