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As a central bank has greater independence from the​ government, the​ economy's inflation rate tends to

User Ming Chan
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Answer:

The​ economy's inflation rate tends to stable and low

Step-by-step explanation:

As a central bank has greater independence from the government, the economy inflation rate tends to be stable and low Because when central banks are independent from the government, they tend to make better monetary policy decisions as they do not work for votes, so they take suitable measure without thinking about politics. Thus, they have better credibility in the country.

The independence granted to the central bank tend to let the bank utilizes its full fiscal knowledge at its disposal with the help of past record, knowledge of accountant, economist, financial analyst and other expert working under the independent and head bank. This leads to stability in the economy, and inflation expectation are low.

User Saroyanm
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