A push for elevated regulation may also easily break the fragile consensus achieved by most countries in the aftermath of the global financial crisis: In recent weeks, for instance, the Bank of England’s Prudential Regulation Authority has expressed strong reservations about EU proposals on the role of bonuses on bankers’ remuneration.
This would ensure that fiscal policy decisions remain under the purview of the fiscal authorities, not the central bank. Summary To summarize, it is important for governments to maintain independent central banks so that they are better able to achieve their mandates.