As such, independent central banks are no longer a necessity to ensure credibility and keep inflation expectations anchored. Such reasoning rests on two assumptions: first, that inflationary pressures have, by and large, disappeared in advanced economies; and second, that the social consensus behind price stability is now so well established that elected authorities would not compromise it in the pursuit of other objectives.
Both of these assumptions can be questioned. First, the absence of inflationary pressures in recent years is well-explained by two factors, and neither would justify a change to the monetary policy framework.