Independence of the Bank of Latvia is guaranteed by law and ensured in practice. No institution or person can influence the Bank of Latvia’s decisions. The Governor and members of the Board of Governors are appointed by the parliament for a six-year term and cannot be dismissed, thus their personal independence is ensured. The central bank’s budgetary independence is also secured.
Central banks, especially those of developing countries, such as India, need to hone their judgment skills as they pursue growth and financial stability. Autonomy versus accountability During the crisis, governments and central banks coordinated their efforts to launch unprecedented expansionary fiscal and monetary policies. As countries contemplate exiting these expansionary policies, the familiar tensions between monetary and fiscal policies are showing up again.