In Biblical times, a jubilee meant the freeing of debt slaves.
Ancient Israelites had the concept of a debt jubilee every five decades, where people could come out of servitude, return to their land, and so forth.
Solon, who is credited for building some of the foundations of ancient Greek democracy in the sixth century BC, used a partial debt jubilee as part of his solution to avoid catastrophic class conflict:
https://www.lynalden.com/debt-jubilee/
When Trump sees his economy crash and burn despite his best efforts, I wonder if he turns to a debt jubilee. This would make him beloved on the left, and the right would forgive him for it.
Given his populism and unpredictability, I could see this happening. And if we did stomach such a measure, it would have immediate positive effects on the economy despite the moral hazard it creates.
I agree that they should be independent (really they should not exist at all), but I think there are more reasons.
At least when it comes to foreign debt, we rely on other countries buying our debt and using our dollars. If we have to default on that debt, who would want to lend us money after that? Government would have to be reigned in if they can't play these debt games anymore... and they don't want that.
to argue the central bank should be free from democratic influences is slave talk. You should go one step further and just admit you desire the rulers of the country be free from democratic influences as in your previous comment (no politician wants to do difficult things on their watch).
It's nonsensical to argue that the central bank be free from democratic influences but the government not be. This amounts to civilization of slaves that are passively given the toy steering wheel to give the illusion of control (using the analogy lyn gives). The power contains within a central bank rivals the power of the government.
As I said they should not exist at all. But if the option is political (you call it democratic) control or independence, then definitely independence.
A politician never wants interest rates going up on his watch. People aren't going to vote for an economic crash, so they end up with hyperinflation which is worse. Though we may end up there anyway, so the best idea is no central bank.