Central bank independence refers to the degree of autonomy a central bank possesses to conduct monetary policy and manage the financial system without undue political or government interference. This autonomy is considered vital for maintaining price stability and ensuring that long-term economic interests, such as inflation targeting, are prioritized over short-term political pressures. Independence manifests in several forms: instrument independence (the freedom to set interest rates) and goal independence (the authority to define monetary policy objectives). Independent central banks are typically characterized by transparent operations, clear mandates, and protected leadership terms, which collectively enhance the credibility of monetary policy. Critics, however, occasionally argue that such independence can create "unaccountable" technocratic institutions removed from democratic oversight.