Bundesbank

The German central bank was set up in 1957 and given full independence to set interest rates - (comparable independence is enjoyed by the Bank of England ).

Because of Germany's uncomfortable memory of the hyperinflation of 1923, the Bundesbank was given an exceptional degree of independence from the government in its role of safeguarding the value of the currency and, therefore, in its ability to set interest rates as it chooses.

See also German interest rates .

Last Updated: May 2007 © Moneyextra.com

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