Whither central bank independence

The signal from the RBI governor is that the balance will tilt in favour of the inter-dependence of policies and implicit coordination with the government

For the past five years, the relations between the government and the Reserve Bank of India (RBI) have been debated. Much of this debate, however, is based on an inadequate understanding of central bank independence.
 
Central banks perform four functions: Price stabilisation, which is essential for maintaining trust in the currency; financial sector development and stability, in particular, because of it being the lender of the last resort, especially for banks; reducing volatility in and maximising of output and employment; supporting government borrowing when appropriate; and, very importantly, restraining the use of such borrowing when necessary. 
 
 Central banks,