But to increase political accountability and to sacrifice the independence of the central bank is to throw the baby out of the bath. Monetary policy is complex and technical. Handing control to politicians is more prudent than handing over keys to the country's nuclear power plants. Read more The fund's fourth consultation underlines the enormous uncertainty facing Britain in the ambitious task of negotiating an exit from the eu. In his theory, money supply is controlled by the central bank and is an exogenous variable with no interest rate elasticity. At this point, monetary demand depends on people's psychological "liquidity preference". The fund's fourth consultation underlines the enormous uncertainty facing Britain in the ambitious task of negotiating an exit from the eu.