Central bank independence is justified by expert pseudoscience.

Evidence

Today, the tone has not changed. Scientific articles laud the “social desirability” of keeping citizens away from monetary decisions in favor of “an agent whose preferences are more inflation averse than are society’s preferences.” The policies of central banks are shaped by small groups of experts, an oligarchy of knowledge, founded on pseudoscience. Their exclusive knowledge is the tool used to justify the undemocratic nature of an institution endowed with immense power, capable of influencing the lives of every citizen, from the cost of their cereal to their job opportunities. The European Central Bank retains formal “independence from elected officials,” so as to operate “without prejudice” in favor of price stability—its primary mandate. — Clara E. Mattei, Escape from Capitalism, 375

Categorization

• SEED: The inflation-aversion justification is a perfect case study in how a normative preference gets dressed as a scientific finding.
• XREF: connects to: The Nobel economics prize was created to win public deference for central bank independence — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 476; Central bank independence doctrine advanced economists’ professional self-interest as much as monetary policy — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 477; Interwar experts sold austerity as objective science concealing true economic facts from the people — Clara E. Mattei, The Capital Order: How Economists…, 744 (+6 more)

Broader Connections

• The Nobel economics prize was created to win public deference for central bank independence #expands (0.85) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 476
• Central bank independence doctrine advanced economists’ professional self-interest as much as monetary policy #corroborates (0.80) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 477
• Independent central banks originated as a way to dodge democratic pressure. #corroborates (0.80) — Clara E. Mattei, Escape from Capitalism, 374
• Central bank independence was formalized to exempt economic policy from democratic control #corroborates (0.80) — Clara E. Mattei, The Capital Order, 71
• Central bank technocracy was framed as superior to democratic control precisely in democratic ages #corroborates (0.80) — Clara E. Mattei, The Capital Order, 1013
• Central bank independence was designed to insulate deflationary policy from democratic opposition. #corroborates (0.80) — Clara E. Mattei, Escape from Capitalism, 374
• Economics legitimizes austerity claims by pretending to value-free objectivity. #corroborates (0.80)
• Interwar experts sold austerity as objective science concealing true economic facts from the people #corroborates (0.75) — Clara E. Mattei, The Capital Order, 744
• Central bank independence shifted economic decision-making beyond electoral reach #corroborates (0.75) — Clara E. Mattei, Escape from Capitalism, 421