A bit further up Mass Ave, Adam Posen was writing his PhD dissertation at Harvard on the very same issue. In New Zealand, the government had established a new framework for independence for the Reserve Bank of New Zealand (RBNZ) in 1989, which granted the RBNZ significant independence, including making the Governor directly accountable for any failure to achieve the price stability objective.
There is nothing automatic about the process, which is what makes the other policies that facilitate and support it extremely important. This is where some questions about India’s ability to replicate the process arise. A basic concern is the quality of the workforce. Chart 6 provides a comparative picture of the most basic workforce quality parameter, i.e., whether workers have been through secondary school.