The discipline of controlling this dangerous element of modern, sophisticated market economies, is not a responsibility only of the central bank. It is not only a problem of macroeconomic policy, but also one for institutions operating at the micro-level.
There must therefore be good co-operation between the central bank and Government, and regular consultation must take place between the Governor of the Reserve Bank and the Minister of Finance. The task of the central bank must be clearly defined and must be restricted to the objective of creating a stable financial environment that will be conducive for optimum real economic development.