Furthermore, stable money and public trust in central banks are essential to generate broad acceptance of their independence in the population at large. Independence protects central banks against political interference and thus underpins the credibility of monetary policy. By contrast, a lack of public trust can render the central bank more vulnerable to political pressure.
In a worst-case scenario, such a development can call into question the central bank’s independence. [2] Central banks’ public perception has changed substantially since the 2007-2009 global financial crisis. The tasks carried out by many central banks have become more diverse, for instance in the areas of banking supervision and financial stability.