2023/08/22 by Ion Pohoata, Ion Pohoaţă, Delia Elena Diaconaşu +5 · 1 voice
Economics, Econometrics and Finance · #Economic Theory and Policy #FOS: Economics and business #General Economics (econ.GN) #General Finance (q-fin.GN) #econ.GN #q-fin.GN
paper · pdf · doi:10.48550/arxiv.2311.10716
openalex publication_date 2023/08/22 · arxiv published 2023/08/22 · arxiv updated 2023/08/22 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper testifies to the fact that the independence of the Central Banks, as stated by its founding fathers, is nothing more than a chimera. We demonstrate that the hypothesis inflation is a purely monetary phenomenon does not support the plea for independence. Moreover, we show that the conservative central banker, the imaginary Principal-Agent contract, the alleged financial autonomy, just like the ban on budgetary financing, are all arguments that lack logic. We equally show that the idea of independence is not convincing because its operational toolbox, as well as the system of rules it relies on, lack well-defined outlines.