2  2  The Australian government announced in its 2011/12 Budget that in order to support a liquid and efficient bond market it will aim to maintain the stock of outstanding CGS at around 12 to 14 per cent of GDP, a level which the Reserve Bank views as appropriate for this purpose.
While many Latin American countries changed the legal and operational framework, the change was prompted by people's aversion to high and chronic inflation. The causality between the rate of inflation and the degree of independence of the central bank may be viewed as bi-directional, since it would be argued that persistent high inflation led to changes in the operational framework in many countries.