Central bank independence was formalized to exempt economic policy from democratic control

Evidence

While the Italian economists’ antidemocratic views were more explicit— Pantaleoni called democracy “the management of the state and its functions by the most ignorant, the most incapable” (Pantaleoni 1922, 269)— the British technocrats also recognized that, even in Britain, economic institutions required exemption from democratic control in order to proceed optimally. Indeed, the Brussels and Genoa conferences formalized central bank independence as a crucial step to this end. Th e famed British economist Ralph Hawtrey described the advantage of situating a central bank free from “criticism and pressure,” noting that the bank could follow the precept “Never explain; never regret; never apologise” (Hawtrey 1925a, 243). — Clara E. Mattei, The Capital Order, 71

Categorization

• XREF: Connects directly to the modern push for central bank independence and its anti-democratic rationale; relevant to contemporary austerity and technocratic governance literature. — 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; Central bank independence shifted economic decision-making beyond electoral reach — Clara E. Mattei, Escape from Capitalism, 421 (+11 more)
• SEED: Angle: the ‘never explain, never regret’ doctrine of central banks as a through-line from Hawtrey to modern inflation-targeting technocracy.

Broader Connections

• Central bank independence was designed to insulate deflationary policy from democratic opposition. #corroborates (0.95) — Clara E. Mattei, Escape from Capitalism, 374
• Ordoliberalism institutionalized competition policy and an independent central bank against parliamentary control #corroborates (0.85) — Mark Blyth, Austerity, 364
• The gold standard shielded monetary policy from democratic politics #expands (0.75) — Clara E. Mattei, The Capital Order, 998