Question

Why is it important for the central bank to have both autonomy and accountability?

Answer 1

Explanation:

An autonomous and accountable central bank may help prevent that undue influence adversely affects the financial sector. The degree of autonomy delegated to the central bank affects the design of the structure of the governing bodies and the accountability provisions.

Answer 2

Answer:

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Explanation:

#The International Monetary Fund (IMF) supports central bank autonomy and accountability, since it facilitates price and financial sector stability, which are conducive to sustainable economic growth.

#At the same time, it must be accountable for the authority delegated to it to ensure checks and balance

#An autonomous central bank is ultimately accountable to the general public, but may be directly accountable to the executive branch or the legislature.

# Often it depends on tradition and the governance structure, say there is a separate supervisory board, but it should be clear to which arm of government—often the legislature in newer central bank laws—the central bank is formally accountable to avoid dilution of responsibilities.