Central bank independence is 'oversold', says Cargill

Milton Friedman

The conventional wisdom that formal independence enables central banks to keep a lid on inflation by shielding them from political pressures is "more myth than reality", writes Thomas Cargill, chair of the 2013 American Economic Association's session on central bank independence, in the February 2014 issue of Central Banking journal.

Rather, the best outcomes are reached when policy goals are constrained by a clearly defined rule that is easily measured and therefore allows for greater

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