S/E/34. Is full (i.e. instrument and goal) Central Bank Independence preferable to instrument (or 'operational') independence alone?

This essay looks at the global trend towards greater Central bank Independence, it distinguishes between the different degrees of Central bank independence and makes a case for and against the both types of Central Independence based on theory and empirical evidence. It identifies which countries should adopt the different levels of Central Bank Independence based on their structure and level of credibility given to their individual Central Banks. Particular reference is given to Bundesbank, European Central Bank, Bank of England and other core Central Banks.