Central bank independence is a social and political convention, often enshrined in law, that addresses a basic tension between the short-term interests of those who rule and the long-term interests of those who are governed.
Current convention has its origins in:
the demonstrated capacity of central banks to tame rampant inflation, though at some economic cost (Paul Volcker in the 1980s);the demonstrated ability of central banks to maintain price stability, if not subject to fiscal dominance (the
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