Indeed, this interaction calls for a reasonable degree of intellectual integrity, professional competence and mutual respect in both the central bank and the Government. Accountability can be narrowly defined or approached in a broader as well as longer term perspective. In a narrow sense, it can be argued that a central bank is accountable to the Ministry or to the Parliament through the Ministry.
In a broader sense, it can be argued that central bank, as a significant public institution should be accountable to the public at large, unless there is a constitutional or legal hurdle. In this sense of broader accountability, in a way transcending political cycles, a central bank has to be not only transparent but should also effectively articulate its policy.