The generally agreed upon reason independence leads to lower inflation is that politicians have a tendency to create too much money if given the opportunity to do it.
Saturday, December 5, 2009
I was reading an article which at one point talked about the Fed. Just to brush up my knowledge I wiki'd it and skimmed through it a bit. In doing so I came across this little chart in the sidelines and this little tidbit in it's explanation. I found it poignant because I totally agree with the last part.