A failure to do so would risk nurturing what Yascha Mounk once labelled “undemocratic liberalism” – a system in which citizens feel that their political preferences are routinely ignored by unelected authorities. [9]  In a democracy, people have the power to express their discontent with the government at the ballot box. But they cannot elect a new central bank leadership.
Independence therefore carries large responsibility. And central banks are taking this responsibility seriously. For example, most experts agree that central banks do not have the tools to address inequality. But the absence of tools does not free central banks from carefully examining the distributional consequences of unconventional policy measures, and from taking such findings into account when weighing and calibrating policy options.