Suffice it to say that the importance of central banks’ independence for the maintenance of price stability can scarcely be overestimated. 2  BIS Review 101/2006  In this context, the track record of my institution, the Deutsche Bundesbank and its former currency, the D-Mark, is a good example of central bank independence definitely being conducive to maintaining price stability.
The credibility-enhancing effect of the Bundesbank’s independence was probably best encapsulated by Jaques Delors, who in the 1990s famously remarked that “Not all Germans believe in God, but they all believe in the Bundesbank”. This remark has to be taken with a pinch of salt, but there are other examples which support the strong connection between independence and monetary stability.