The central banks, in turn, will best protect their independence by adopting a narrow interpretation of their mandate. In summary, it can be said that “Today most central banks are independent, headed by nonelected officials, and quite powerful. This set-up is acceptable only if independence is limited by the mandate. That’s the framework the legislators have given us […].
It is important to distill key lessons from the past use of these tools in order to make them more effective in the future. 4 First, in some cases around the world, unconventional tools were implemented only after long delays and debate, which sapped confidence, tightened financial conditions, and weakened recovery.