Central bank independence was designed to insulate deflationary policy from democratic opposition.

Evidence

The solution was to legitimize central banks as independent bodies—“free from political pressures”—to ensure that they were “managed exclusively according to lines dictated by financial prudence.” The influential British Treasury economist Ralph Hawtrey openly supported the establishment of a central bank with minimal democratic scrutiny, which could follow the precept “Never explain, never regret, never apologize.” The British technocrats exported this model to their colonies and other countries of the Global South, such as Brazil and India. — Clara E. Mattei, Escape from Capitalism, 374

Categorization

• XREF: Connects the post-WWI central bank model to the reader’s other cases — Italy, Chile, Argentina — as an examined template. — connects to: Central-bank independence was designed to insulate price stability from democratic pressure. — Mark Blyth, Austerity: The History of a Dangerous…, 422; Independent conservative central bankers can credibly commit against inflation where politicians cannot — Mark Blyth, Austerity: The History of a Dangerous…, 423; The Bundesbank was deliberately designed to crowd out Keynesian deficit spending. — Mark Blyth, Austerity: The History of a Dangerous…, 372 (+5 more)
• QUESTION: Worth chasing: how exactly did Britain export this model to colonies — via advisors, loans, coups?