The participation of, and indeed coordination by the finance ministry, underlines its role in crisis management and resolution. Financial stability and central bank autonomy 22. The much prized autonomy of central banks has come under assault post-crisis with an influential view gaining ground that one of the principal causes of the crisis was the unbridled autonomy of central banks.
The standard argument for central bank autonomy is that autonomy enhances the credibility of the central bank’s inflation management credentials. Monetary policy typically acts with a lag, and price stability therefore has to be viewed in a medium term perspective.