How does a government approved low inflation mandate

Reference no: EM131013671

(a) What are the principal arguments for a country to have an "independent" central bank?

(b) In Canada, how does a government approved low inflation mandate for the Bank of Canada help ensure the independence of the Bank of Canada? How does this low inflation mandate impose a constraint on the Government of Canada's ability to run large and persistent budget deficits?

Reference no: EM131013671

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