Why Is Central Bank Independence So Widely Approved?

Journal article

In terms of achieving broad professional support and giving economic analysis a clear influence on policy making, the doctrine that central bank independence improves economic performance has been a resounding success. On the other hand, the scientific literature also contains a number of unanswered criticisms of the idea and it is suggested that this makes the breadth of support for independence and the depth of feeling it evokes facts in need of explanation. It is further suggested that although many of the factors that have contributed to the rise of independent central banking since 1988 have been mentioned in the literature, there are also previously unconsidered interests which have been advanced by it and that their recognition contributes powerfully to understanding economists' support for independence.

Authors: Forder, J

• Publisher: University of Nebraska
• Journal: Journal of Economic Issues
• Volume: 39
• Issue: 4
• Pages: 843 - 866
• Publication date: 2005-01-01
• ISSN: 0021-3624
• Language: English