Principles of good central bank design

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1. Do you think the current policy for appointing members to the Board of Governors is consistent with the principles of good central bank design?

a. No.

b. Yes.

Explain your answer.

a. Since they are appointedPicture governors are not concerned with being re-elected and are more likely to succeed in delivering lower rates of inflation.

b. Appointing the Board of Governors promotes increased accountability.

c. The fact that the governors are appointed by state governors reduces the opportunity for political influence and is consistent with central bank independence.

d. The appointment of the members is inconsistent with central bank independence.

Reference no: EM131896473

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