Why Independent?

TL;DR

A recent incident involving the Finance Minister's departure from a central bank meeting signals a concerning rupture between the government and the central bank.
Central bank independence is vital for controlling inflation by preventing governments from printing money to finance spending.
Independence also shields monetary policy from short-term political pressures, fostering credibility and enabling long-term decision-making.
Historical examples such as Germany in the 1920s, Zimbabwe in the 2000s, and Venezuela illustrate the devastating effects of compromised central bank independence, leading to hyperinflation and economic crises.
The essential function of the central bank is to protect the purchasing power of money.

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