ECB's Bini Smaghi on central bank independence

In the speech 'Central bank independence: from theory to practice' given on 19 April Lorenzo Bini Smaghi of the ECB said fiscal discipline is important, and highlighted that out of control spending will undermine monetary policy.

'Governments can undermine the independence of monetary policy by conducting an excessively profligate and hence unsustainable fiscal policy,' he said in a speech in Budapest.

Bini-Smaghi also said the ECB is worried about political pressure being put on central banks

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