 [17] It would be naive to believe that politicians would then relinquish their influence over the central bank or give precedence to the objective of price stability over their own agenda. That is why independent monetary policymakers with a clear mandate remain a key foundation on which to ensure price stability in the future as well.
In my view, it is all the more important for central banks to stick to a narrow interpretation of their mandate. In fact, it’s hard to square the independence of a public sector institution with democratic principles. In Europe, it has been granted to monetary policy as an exception for the specific aim of safeguarding price stability.