Just over a decade ago, the Bank of England was given full monetary independence from the British government, making it one of the last major central banks to achieve this status. The move was heralded as critical for maintaining confidence in the Pound and for removing political calculus from monetary policy.
But fast forward to 2009 and the heralded independence of the BoE, along with its counterparts, the Federal Reserve in the United States and the Bank of Japan amongst others, is not to be take for granted. Monetary policy seems to have come under the influence of politicians once again. Is this good for the global economy?