How to Keep Central Banks Independent

Group of economists in the piece say central banks should go back to their original mandate of financial stability:

Some observers say central banks can best mitigate risks to their independence by returning to the narrow price-stability mandate that served them so well prior to the global financial crisis. But this advice is misguided: central banks must revive their original role as guardians of financial stability.

….

Protecting central-bank independence requires adaptation. In the post-crisis world, governments and citizens will continue to delegate increasingly broad policymaking powers to an unelected independent institution. Central banks must therefore become increasingly accountable in order to maintain their legitimacy. We need a public debate to forge agreement on a framework for central banks’ objectives, tools, and communication mechanisms. Failure to have such a discussion would pose a risk not only to central-bank independence, but also to financial stability and overall social welfare.
Hmm..
I doubt this will help. Take the case of European central bankers which are part of the Eurosystem. As monetary policy is given to ECB. most of these central banks look at financial stability. Yet are under pressure from Governments.
Unless, we have better rules to prevent firing of the central bankers autonomy would always be in the hands of the government.

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