@enigmashade

Therefore, for fiat currencies to work effectively, governments need to be able to fulfill their promises and not abuse the system. The approach taken by the United States and most developed market economies is to give central banks clear objectives (usually in the form of inflation targets) and operational independence. Elected officials typically exercise some oversight over central banks to ensure democratic accountability. With the exception of a brief post-COVID-19 spike in inflation, this system of clear objectives, operational independence, and democratic accountability has achieved low and stable inflation in major economies since the mid-1990s (Figure 6).

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