The Three Pillars of Central Bank Governance - Towards a Model Central Bank Law or a Code of Good Governance?

Taking a normative approach this paper identifies and develops basic principles for the good governance of central banks, namely independence, democratic accountability and transparency. In doing so the paper focuses on the arrangements surrounding the primary task of a central bank, i.e. the conduct of monetary policy. What is highlighted throughout the paper is that these principles cannot be considered in isolation, as they are intertwined and in some instances positively or negatively correlated. The paper also examines whether and to what extent principles can form the basis for establishment of a model central bank statute or law that could be promoted throughout the world