IMF Study: Independent Central Banks Help Reduce Inflation

There is a long-term discussion on the value of central banks and how that influences our economy. The International Monetary Fund conducted a study of banks between 2007 and 2021 and found that strong and independent central banks make a significant difference in bringing inflation down. The ability to control and manage the money supply and policies does impact the cost of borrowing. 

In the big data era, there is going to be much more information on the economy and that will allow for greater assessment, theory, and understanding by central banks. How they handle inflation now may change as new information and research come forward to make decisions more accurate. 

Strengthen Central Bank Independence to Protect the World Economy

Source IMF