The central bank's crucial role is to ensure the stability of the currency through complete independence while keeping inflation levels low and stable. But it is not often where its role will lead to preventive oversight of functions that are inextricably linked to action. For example, the functions of a central bank tax representative. In addition, the financial sector of the central bank with regulatory functions and advisory powers, as well as its own participation in the financial system allow to encourage the development of the sector, which will require close coordination with the government, for example in legal reform.
Economists argue that banning monetary financing of governments is a key element in ensuring the operational independence of a central bank. By protecting its independence, it helps ensure that monetary policy decisions are geared towards monetary objectives while maintaining the health of the economy, rather than having to accept pressure from public authorities to help finance government deficits. But it is very common for a central bank to declare independence of an institution without independence of purpose. In this case, the government sets its own monetary policy goals and leaves the choice of instruments to the central bank, depriving it of long-term economic stability.
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