Financial Times: Downturn erodes central bank independence.
downturn has weakened their operational independence as it has left
them filling in for governments unable, or unwilling, to prevent an
economic slowdown, a report, due to be published on Tuesday, has said.
Central banks have taken more responsible for stabilizing the economy and undergone more political pressure from the government.
People are now expecting for the power of central banks managing and controlling the financial markets and thus the national economy and they cant ignore it any longer.
The questions to this problem is,
(1) Does this matter? To whom? Does it go without saying "So what?"?
(2) Any negative effect on the economy and the people's lives? Say, higher prices or higher interest rate, or something?
(3) What does "independence" mean? Why do central banks need their operational and instrumental independence?