Regulatory independence safeguards against political interference from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
Regulatory independence is a crucial aspect of ensuring that regulatory decisions are made in the public interest, rather than being subject to political interference. When regulatory agencies are free from political influence, they are better able to make decisions based on economic principles and the best available evidence, rather than on political considerations or pressure. By being independent, regulatory agencies are able to act in a more impartial and objective manner, taking into account the long-term consequences of their decisions and prioritizing the welfare of consumers and the overall efficiency of markets. This independence helps to build trust in the regulatory process, as stakeholders can be confident that decisions are being made based on sound economic reasoning rather th...
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