00:00The point of independence is not to protect policymakers or anything like that.
00:05The first is that every advanced economy democracy in the world has –
00:10has come around to this common practice.
00:13It's just an institutional arrangement that –
00:15that has served the people well, and that is to have a separation between –
00:20to not have direct elected official control.
00:25Over the setting of monetary policy, and the reason is that monetary policy can be used
00:30through an election cycle to affect the economy in a way that will be politically worthwhile.
00:35So this isn't – I'm not talking about the U.S. context.
00:37This is every advanced economy democracy of any –
00:40so it's a good practice.
00:43It's pretty much everywhere among –
00:45among countries that look at all like the United States.
00:47And I think if you lose that –
00:50it's – first of all, it would be hard to restore the credibility of the institution
00:54if people lose their –
00:55their faith that we're – we're making decisions, you know, only –
01:00only on the basis of our – of our assessment of what's best for everyone, for the –
01:05wide public, rather than trying to benefit one group or another.
01:08If – if you lose that, it's going to be hard to –
01:10retain it.
01:11And we – we haven't lost it.
01:12I – I don't believe we will.
01:13I certainly hope we won't.
01:15But it's very important.
01:16And the reason it's important is that it's enabled central banks generally.
01:20not to be perfect, but to serve the public well.
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