(2 points) Define instrument independence. (2 points) Which of the following central banks has the least goal independence: the European Central Bank, the Bank of England or the Federal Reserve? Why? (4 points) Give two reasons for having a more independent central bank. (4 points) Give two reasons against having a more independent central bank. The Federal Reserve uses open market operations to help target the Fed Funds rate.
(2 points) Define instrument independence. (2 points) Which of the following central banks has the least goal independence: the European Central Bank, the Bank of England or the Federal Reserve? Why? (4 points) Give two reasons for having a more independent central bank. (4 points) Give two reasons against having a more independent central bank. The Federal Reserve uses open market operations to help target the Fed Funds rate.