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Central banks may be independent from the legislative and executive branches of the government, which means they make policy, or they can be dependent, which
Central banks may be "independent" from the legislative and executive branches of the government, which means they make policy, or they can be "dependent," which means that they play an advisory role. The Federal Reserve was established as an independent branch of the governmenthence the 14-year terms of the governors and the self-supporting securities portfolio. In your view, what is the optimal structure, and why?
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