Question

The independence of the central bank has meant that it takes the long view and not the short view.” Is this statement true, false, or uncertain? Explain your answer.

Short answer

True, the central bank is designed to be a separate and autonomous agency excluded from the political cycle. This allows them to take the long view, a stable and functioning economy decades down the road. Rather than be pressured by the short-view market panic over inflation or demand fluctuations.

Step-by-step solution

Concept 

True, the central bank is designed to be a separate and autonomous agency excluded from the political cycle. This allows them to take the long view, a stable and functioning economy decades down the road. Rather than be pressured by the short-view market panic over inflation or demand fluctuations.
For example, if there is a market crisis and hundreds of thousands are suffering, the independent central bank needs to analyze if intervening will result in a worse outcome later, if yes, they will do nothing to help. If they can intervene without hurting the long run more, then they will. (in theory)