Central bank accountability and independence: Are they inconsistent?

The language of discretion offers little information about monetary policy beyond the assurance that policymakers always "do the right thing at the right time". This language renders problematic the reconciliation of central bank independence with accountability. Monetary policymakers should articulate an analytical framework using the language of economics that allows them to respond to the question, "What variables does the central bank control and how does it exercise that control". (C) 2012 Elsevier Inc. All rights reserved.