How Can the Independence of Central Banks be Justified Today?

Since the financial crisis, central banks have been extending their actions into novel territories. More than ever, it is clear that central banks are political actors in the sense that they do affect, to a large extent, “who gets what, when, how” (Lasswell 1936). This broad influence of central banks on the distribution of benefits and burdens in society should prima facie make us reconsider the legitimacy of their high degree of independence. Can we reconcile democratic ideals with the fact that a small group of non-elected central bankers now have these widespread powers? We look at the justification for the independence of courts of justice – another institution having far-reaching powers and made of non-elected individuals, this time judges. We analyze the extent to which a justification for the independence of central banks can rely on considerations similar to the justification for an independent judiciary system.