It is interesting to note though that the societal consensus for independence has formed over time, reflecting experience with spouts of hyperinflation and observed actions of the central bank after World War II. [17] This broad societal consensus in favour of central bank independence has also carried over to the European level.
But modifying rules and institutions so as to achieve objectives that fall outside their primary goals may not be appropriate. In this context, it has been suggested that the ECB’s collateral policy could encourage market reactions to fiscal policies, for example, by imposing haircuts for bonds issued by governments that fail to comply with the SGP.