Central bank independence has to do with monetary policy’s effects in the shot run and the long run. In the short run, an "【21】"

Central bank independence has to do with monetary policy’s effects in the shot run and the long run. In the short run, an "easy" monetary policy can stimulate the economy to grow faster and to lower the unemployment rate. In the long run, output and unemployment depend on real factors such as population growth and improvements in technology, and productivity.
    One way to insulate monetary policy from day-to-day political pressures is to give the central bank greater independence. In this respect, the Federal Reserve or Fed ranks toward the top among the world’s central banks.
    First, the Governors on the Board are appointed to 14 year terms  They are nominated by the U.S. President and confirmed by the Senate.
    Second, the Reserve Bank Presidents are selected by our Reserve Bank’s Board of Directors and approved by the Board of Governors. This provides further insulation from partisan politics.
    Third, the Fed covers its own operating expenses, so it isn’t dependent on Congressional appropriations.  However, Fed is not free of accountability to the government. In fact, the phrase usually used to describe the Fed is "independent within government. "
    There is a way beyond such structural means to make monetary policy even more independent of political pressure to inflate, because the Congress gives the Fed a clear statement that low inflation is its goal. In fact, a number of other countries recently gave their central banks specific low-inflation goals.