Multiple choice

Which of the following are possible advantages of an independent Central Bank? O Isolate monetary policy from political cycles, so as to avoid use of expansionary mon- etary policy to boost economy leading up to an election. O By increasing credibility/commitment of monetary policy central bank it may also improve the trade-offs faced by the Central Bank. O It increases transparency and accountability of the Central Bank for it's actions due to need to report publicly, rather than just directly to Government. All of the above