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Do central bank law reforms affect the term in office of central bank governors?

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  • Klomp, Jeroen
  • de Haan, Jakob

Abstract

In this paper we confirm the hypothesis that central bank independence reforms reduce the likelihood that a central bank governor will be replaced. However, the strength of this effect depends on the rule of law and the degree of political polarization.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4XWMN8D-2/2/987116f90ddd09d036825d7bace3c2e1
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 106 (2010)
Issue (Month): 3 (March)
Pages: 219-222

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Handle: RePEc:eee:ecolet:v:106:y:2010:i:3:p:219-222

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Central bank independence Central bank law reforms;

References

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  1. Beck, T.H.L. & Clarke, G. & Groff, A. & Keefer , P. & Walsh, P., 2001. "New tools in comparative political economy: The database of political institutions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125517, Tilburg University.
  2. Alex Cukierman, 1992. "Central Bank Strategy, Credibility, and Independence: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031981.
  3. Cukierman, A. & Webb, S., 1994. "Political Influence on the Central Bank : International Evidence," Discussion Paper 1994-100, Tilburg University, Center for Economic Research.
  4. Axel Dreher & Jakob de Haan & Jan-Egbert Sturm, 2007. "Does High Inflation Cause Central Bankers to Lose their Job? Evidence Based on a New Data Set," CESifo Working Paper Series 2045, CESifo Group Munich.
  5. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
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