An independent institution bestowed with a public function cannot be assigned powers defined too loosely or an overly broad range of tasks in a democratic society. Such an extension of responsibilities would before long erode the political preconditions for central bank independence and the legitimacy of the central bank itself.
A central bank is not the fourth branch of government; rather, it acts as if it were a “trustee” who performs the task entrusted to it. Central bank independence has proven to be the correct solution for the successful conduct of monetary policy. Bearing in mind the lessons of the 1970s will be important in the future, too.