Any self-interested politician would be predisposed to lean on the central bank to keep interest rates low and inflate debt away
The long and worthy march to central bank independence is in trouble.
Central bankers who are paid to worry about inflation are going to start playing bad cop in the coming months, tightening the screws on the recovery with higher rates and reduced stimulus. As the process begins, politicians seem unable to resist the temptation to try to meddle. They're just doing what politicians do, because they know that higher rates and slower growth may make governing hard and staying in government even harder. But it's a disturbing trend.
The pace of would-be... Full Story
