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The central bank is the bank of government; the bank of issue; the bank of banks; the bank of controlling macro-economy. The main difference between the central bank and the commercial banks is that the purpose of the central bank is not to make a profit, the purpose of the central bank is to give the service to the aim of the country’s macro-economy.
Therefore, the problem of the central bank’s independence is how much decision-making power the central bank has in making and carrying out monetary policy, controlling and managing the finance. The degree of the central bank’s independence is determined by its legislation definition and when the central bank uses its decision-making power, the extent of the central bank is subject to the government...
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