The Myth of an "independent" RBA

Libertarians should know better than to believe that anything funded by the government is "independent". There is copious amounts of evidence that the Reserve Bank of Australia is politically influenced. For example, during election times, the pressure is always to cut the cash rate. During the current financial crisis, the pressure has also been to cut the cash rate, even though the RBA Governor admitted it will lead to another housing bubble.

You have to have a certain degree of hardcore cynicism about the State to believe that even when something is labeled "independent", it is still open to political influence.