Why is it important for the central bank to have both autonomy and accountability?
Answers
central bank needs to have an autonomy as an independent body is needed to supervize and regulate formal sector loan so that they give cheap credit at reasonable interest to all groups of people henpeop country could develop...
central bank should be accountable because it has to act as a lender of last resort for all commercial banks, it issues currency notes on behalf of the govrn. , if it is not accountable to the other banks or people than banks could lose balance in the process of intermediation between borrowers and depositors in wake of earning more profit, hence banks could go bankrupt, and the country' s economicca , financial , communication etc would collapse and in extreme situations a hyperinflation or economical depression could take place...