In chapter 21 of his famous book entitled “The Constitution of Liberty” and published in 1960, he wonders, as I have just flagged, whether an independent monetary authority, fully protected against political pressure and free to decide on the means to be employed in order to achieve the ends it has been assigned, might be the best arrangement.
However, he seems to have viewed central bank independence as an inadequate solution since, as early as the 1960s, he concluded that, in light of the high level of government debt, “…an effective monetary policy can be conducted only in co-ordination with the financial policy of the government.