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The gov't decides the policy of the central bank, so it's always political. Right now, the scheme is to drive inflation which pours newly printed money into gov
by skylan_q 11y ago
The gov't decides the policy of the central bank, so it's always political. Right now, the scheme is to drive inflation which pours newly printed money into gov't coffers as that's how new money makes it into the economy: through gov't bonds.
If the gov't created a policy of deflation (which would be against them growing their budget as much as possible) then there would be deflation.
The central bank policy is always political.