Central bank independence and the commitment to monetary stability: The case of the German Bundesbank

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Abstract
It is generally accepted that a legally mandated independent central bank will pursue an anti‐inflationary monetary policy, even in the face of pressure from those politicians who appointed the central bank's decision makers. But are politically minded appointees to a central bank really transformed into die‐hard defenders of monetary stability? And, if so, why? This article seeks to answer these questions by exploring the case of the German Bundesbank. Hypotheses for explaining the anti‐inflation orientation of the central bank are explored and supporting evidence for each of the hypotheses is sought, using interviews with Bundesbank council members.