Moreover, the effect of quantitative easing (QE) has been drastically to shorten the average duration of public sector debt (including the cash liabilities of the Central Bank). The implication of this is that when interest rates go up, this will have an even quicker effect in raising the interest burden that the Minister of Finance has to face. So, Chapter 13 argues that Central Bank independence (CBI) will come under even greater threat in the future than it has been recently.
