There are now a laid-down set of principles for assessing central bank independence according to four key criteria, Lorenzo Bini Smaghi, a member of the European Central Bank's executive board, said on Thursday.

The four were:

· functional independence, which requires the setting of a clear objective - price stability - and making available the appropriate instruments in order to achieve it;

· institutional independence, which prohibits the decision-making bodies of the central bank from seeking