Is it possible that an Independent Central Bank is Impossible? The Case of the Australian Note Issue Board, 1920-1924

Abstract

The history of the Australian Notes Issue Board over the period 1920-1924 is presented. It is shown that the Board was created as a genuinely independent monetary authority, but was soon abolished, as its policies antagonised interests upon which the government depended. The episode illustrates the thesis that the possibility of a genuinely independent monetary authority is problematic.