This debate has led to a wealth of academic literature being published on the ideal conditions for delegating powers and coordination between policies.4 To be clear from the outset: it is the task of safeguarding the purchasing power of the currency that requires shelter from political influence.
The same degree of independence is not necessarily justified for other policy areas entrusted to central banks that lie beyond this mandate.5 That is why I have repeatedly encouraged a functional approach to the concept of independence.6 Given my audience today, I will not discuss microprudential supervision or financial stability considerations.