Prompted by proposed changes to Australia's Reserve Bank, as well as increased criticism of central banks globally, today we discuss what central bank independence means, its historical development, and the evidence for its effectiveness.

Mark analyses key moments in the formation of modern central bank theory including "The golden age of central banks " of the pre-2008 era , the impact of the Global Financial Crisis, and the post-COVID inflation shock.

We also discuss the implications of central banks acting as "accountability sinks" and explore current challenges to their independence.

This episode aims to provide context for ongoing debates about the role of central banks in modern economies and why these issues matter. We'd love to hear from you as to whether you would enjoy more episodes that provide this type of context, would rather we stick to the latest data, or anything else! Please email us at: [email protected] You can find more of Mark's analysis, including weekly economic data here.