Which statement about central bank independence is NOT true?

Central bank independence is a critical concept in economics, referring to the ability of a central bank to make decisions without direct political influence. A statement regarding central bank independence that is not true is the one suggesting that it is usually guaranteed by a country's constitution.

While some countries enshrine the independence of their central banks in their constitutions or legal frameworks, this is not universally true. The degree of independence can vary significantly based on national laws, traditions, and the political context. In many cases, central banks operate under governmental authority and can be subject to political pressures, which means that independence is not an absolute constitutional guarantee across all countries.

The other statements reflect realities of central bank operations and governance. For instance, independence can indeed be given at the government's discretion or revoked during crises when governments may prioritize short-term economic stability over long-term institutional independence. Additionally, fiscal policymakers can influence or undermine central bank decisions through actions that affect monetary policy goals.