"Both of us have a wider mandate than is typical of central banks," Subbarao said delivering an oration at Sri Lanka's central bank in the capital Colombo.
"In addition to maintaining price stability and macroeconomic stability, we both have responsibilities for currency management, debt management and external sector management,"
"More importantly, we also have an obligation to calibrate our policies to promote the socio-economic development of our peoples.
"And in the wake of the crisis, we face the common challenge of managing our policies, particularly preserving financial stability, in the face of globalization.
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European Model
Subbarao said the Riksbank in Sweden, considered the first central bank was established in 1668. The Bank of England came in 1694.
Riksbank was set up to take over a bank which printed notes in collusion with the Swedish king but collapsed ignominiously as its gold backing declined.
A modern pegged central bank that prints too much mo