IEA Authors Stress the Importance of Keeping Monetary Discretion Out of the Hands of Politicians

The latest monograph published by the Institute of Economic Affairs, "Money, Inflation and the Constitutional Position of the Central Bank" by Professors Milton Friedman, Charles Goodhart and Geoffrey Wood, contains important insights into the causes and consequences of inflation and the ideal relationship between central banks and governments.

The monograph includes two previously published papers by Milton Friedman, which were instrumental in changing the attitude of policymakers, journalists and academics, towards inflation, its causes and its consequences. New insights are added in the paper by Charles Goodhart, Special Adviser to the Governor of the Bank of England.

He argues that there is no loss of democratic legitimacy from an independent central b