In yesterday’s blog – If only the citizens knew what was going on! – I noted that it makes very little sense from a flow of funds perspective to consider the central bank not to be part of a consolidated government sector along with the treasury. The notion of a consolidated government sector is a basic Modern Monetary Theory starting point and allows us to demonstrate the essential relationship between the government and non-government sectors whereby net financial assets enter and exit the economy without complicating the analysis unduly. This simplicity leads to many insights all of which remain valid as operational options when we add more detail to the model. However, it still seems that readers are confused by this and somehow think that the consolidation is misleading. So for today’s blog I aim to explain in more detail what this consolidation is about. It should disabuse you of the notion that the mainstream macroeconomics obsession with central bank independence is nothing more than an ideological attack on the capacity of government to produce full employment which also undermines our democratic rights.