Central bank independence is controversial. It requires the delegation of powerful authority to a group of unelected officials. In a democracy, this anomaly naturally raises questions of legitimacy. It also raises fears of the concentration of power in the hands of a select few.…
Good starting point. They acknowledge the issue is a tradeoff between democracy and technocracy, and price stability and growth, liquidity and solvency.
A Primer on Central Bank Independence
Stephen G. Cecchetti, Professor of International Economics at the Brandeis International Business School, and Kermit L. Schoenholtz is Professor of Management Practice in the Department of Economics of New York University’s Leonard N. Stern School of Business
ht Mark Thoma at Economist's View
ht Mark Thoma at Economist's View
