Question

Should central banks be privately or publicly owned? Explain.

Short answer

Central banks should always be kept public because they are always responsible for generating stability in the economy not making profits, so they should be trying to stabilize the economy under different economic situations.

Step-by-step solution

Concept Introduction

Most central banks are governments, and their primary role is to maintain price stability and regulate the currency of a country or group of countries.

Explanation

Central banks would not be independent then i.e. if the central banks are privately owned, it will not be in the best interest of the community and the public.

So, it will be better that the central banks are government or publicly owned so that they will be more accountable as well as more responsible for safeguarding the interest of the economy as a whole.