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the main reason independent central banks are better at fighting inflation than politically controlled banks is because they

Sagot :

Independent central banks are better at dealing with inflation than policy-controlled banks, because they regulate the flow of money with the help of various instruments

Advantages of the Independence of central banks

  • The independence of its members, which is nothing more than the limits imposed on politicians so as not to influence the composition of the board of directors of the central bank or its decisions.
  • Financial independence, that is, the autonomy of central banks to be able to manage their operations and not be captive of government decisions.
  • Independent central banks are not obliged to finance government spending and to be able to set their objectives or instruments.

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