Can the autonomy of the central bank be affected by what its owner, the government, milks out of it in terms of dividend? To simplify, this is free money, as the central bank doesn’t pay any interest. A central bank asked to pay higher payments to the government will have to basically print more money. Any central bank worth its salt would know the ramifications on inflation and have to compensate by selling government bonds. And the central bank should have the right to say No.

Source: Mint September 11, 2016 17:37 UTC