Central bank independence does not imply the complete delegation of demand management to the central bank. The achievement of the output and inflation goals of the central bank is very much a function of the fiscal response too. There is a risk that the cult of central bank independence has placed excessive pressure on the central bank to always do more.
This emergence of global low inflation is of course a welcome phenomenon for central banks, for whom price stability is the top priority. At the same time, however, it imposes upon them a new set of tasks.