The 1990s have witnessed a wave of monetary reform throughout the world. More than 30 countries have increased the independence of their central banks, including many in Latin America and Eastern Europe. In Western Europe, countries of the European Union have agreed on plans to adopt a single currency, with an independent European central bank at the controls. Maxfield seeks to explain this trend toward greater levels of central bank independence, particularly among the middle-income countries. Along the way, she forcefully dispels some myths concerning central bank independence