It goes without saying that there has to be a favourable and supportive environment which should facilitate the carrying out of the mandate. After all the central bank, related institutions and agencies are a means of implementing the strategies aimed at attaining an overall shared vision or goal for the country as a whole.
These institutions serve a larger national goal; hence there is need to generate synergies in their activities if the overall national objective is to be achieved. One of the synergies that crucially influences the effectiveness of a central bank’s role in macroeconomic management is its relationship with government. Of necessity, this relationship must be close.