Are Central Banks really independent?

Goldman Sachs offers this chart on central bank independence:


The Goldman piece was about highlighting how the US Fed doesn’t actually have that many legal protections if Trump decides to test his powers.

I didn’t realise how poorly the RBA rates on independence – particularly legal. Peter Costello’s changes to “enshrine” independence are held up as one of his crowning achievements. Bottom 3 of about 50 countries doesn’t seem like a position that Australia should be pleased about.