The independent central bank model

The independent central bank model refers to a central bank that operates without direct political interference. This independence allows it to focus on long-term economic goals, such as controlling inflation and ensuring financial stability, rather than responding to short-term political pressures. By setting interest rates and managing the money supply independently, the central bank can help maintain trust in the economy, which can lead to sustainable growth and stable prices. This model is essential for promoting a healthy economic environment and is widely adopted in many countries around the world.