Changes

In most western democracies the central bank is independent from the government.  This is designed to prevent political interference in monetary policy.  Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day to day operations of it are immune from political pressure (in principle if not always in practice)   

In most western democracies the central bank is independent from the government.  This is designed to prevent political interference in monetary policy.  Generally a government specifies with legislation the general aims of the central bank (usually maintaining a low level of inflation) but the day to day operations of it are immune from political pressure (in principle if not always in practice)   

==Sources==

==Sources==

http://usinfo.state.gov/products/pubs/oecon/chap12.htm

http://usinfo.state.gov/products/pubs/oecon/chap12.htm

[[Category:Economics]]

[[Category:Economics]]