“A ‘central bank’ is a’bank of the government ‘hich regulate, controls, directs and manages the complete Iiuar curl system in an economy with the sole objective or public interest by varying the total supply of money in an economy.” A majority of the central banks in the world arc not able to follow their own independent policies. They used to depend on their functioning of their central banks on the basis of developed countries or western central banks policies. There used to arise money problems as their financial system was not as much developed as the developed countries. SOllie developing countries either with democratic government or dictator government used to influence the functioning of central hank, so as to achieve their personal or political objectives. Due to this the ceonomic development was very slow or nut upto the expectations. The main objective of a ‘celitral bank’ to work for the benefit and wclfare of the whole society is fllPher pushed back due to thc libcrulisation and globalisation ‘policies. The emergence of WTO and the dictates of IMP in the policy framing of developing countries. There can be a rcscmblcncc in the so called Russian dictatorial policy after the second world war on the Warsaw pact countries for economic and other plannings. Only hail Tito. stoud against such policy,
In India thc total inflow of foreign fund 111the economy is increasing day by day, which i. clear fl( III the amount of foreign reserve accumulation 102 billion $s this is a record for the Indian economy. This may induce the public authorities to bring about those projects which may benefit them politically and economically without taking into account the public interest. To day the economic policies as well as the real economic situation are quite conflicting. through money supply 111the economy has increased, but there is no immediate increase in inflation, employment has not mcrcascd with the same ratio as the muncy supply.
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