Restoring Monetary Policy Independence: The Risks of Regulatory Reform
Monetary policy independence is often discussed, but almost never defined. What does it mean for a central bank like the Fed to be independent in the context of American political institutions? What is the point of its being independent? What threatens beneficial independence, and how should current reformers of financial regulation think about the likely consequences of increasing or decreasing the Fed’s regulatory powers or mandates on the Fed’s monetary independence?
Monetary policy independence is often discussed, but almost never defined. What does it mean for a central bank like the Fed to be independent in the context of American political institutions? What is the point of its being independent? What threatens beneficial independence, and how should current reformers of financial regulation think about the likely consequences of increasing or decreasing the Fed’s regulatory powers or mandates on the Fed’s monetary independence?
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