A study of a group of developed countries examined the relationship between two variables from 1962 to 1990. One variable was an index measuring the degree of a central bank's independence from government control (where a higher score means more independence). The other variable was the country's average annual inflation rate. A scatter plot of the data showed a distinct pattern: countries with high scores on the independence index consistently clustered around low average inflation rates, while countries with low scores on the independence index were associated with high average inflation rates. Based only on this described pattern, what is the most accurate conclusion?
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Introduction to Macroeconomics Course
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The Economy 2.0 Macroeconomics @ CORE Econ
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