Economic and legal analysis of independence and accountability of central banks

The first part defines the terms "independence" and "accountability" and as ks whether there is a direct or indirect relation between them. The second Dart brings quantification of central bank's institutional arrangements bot h in developed and transition economies. The third part describes theoretic al foundations of central bank independence and accountability and analyses empirical research on this topic. The fourth part inquires the model of in stitutional arrangement in which the central bank has the completed operati onal independence but it has the limited goal independence (monetary policy 's goals are set in agreements between the government and central bank). Th e fifth part asks the question whether the model proposed above complies or not with the European law.