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The importance of Central Bank credibility

Ruth Tarrant

15th December 2015

A recent Gallup Poll shows that only one third of Americans think that the Federal Reserve (the US Central Bank) is doing a good job, and this isn't helped by politicians in the extreme right of the Republican party and the extreme left of the Democrat party chastising the Bank for keeping interest rates too low (Republicans) or not doing enough to help the poor (Democrats). This criticism does not help the Fed to do its job - having a credible Central Bank is crucial in ensuring that the monetary policy transmission mechanism actually works.

Ruth Tarrant

Ruth has been Subject Lead in Economics at tutor2u for many years after a career of teaching Economics, Business, Politics and Maths in a range of secondary schools. She is a highly experienced A level Economics Examiner, and also teaches undergraduate Economics on a very part-time basis at the University of Oxford. Ruth is passionate about making economics fun, engaging and accessible.

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