Under this amendment, the government would have the right to override the Bank’s policy decisions. To do so, however, the Minister of Finance would have to publish the reasons for his (her) dissatisfaction, indicating both the new measures that the Bank was supposed to undertake as well as the period during which they were to apply.
It was generally agreed, I believe, that such a “nuclear weapon” would only be used when there was a fundamental disagreement between the Governor and the Minister, and that following its use, the Governor would resign. In this way, the rights of a democratically elected government to determine policy were balanced against the needs of the Bank for operational independence.