The resulting strengthened institutional framework, by allowing greater public participation, should support the strengthening of social capital. Persistently high inflation erodes economic capital We live in a very different world than that of the 1980s, but the case for central bank independence remains, in my view, as strong as ever.
But, at the same time, independence is not just given, it has to be earned and maintained. And this means delivering on our price stability mandate in the first instance, and also communicating clearly the rationale for our policies.