Central Bank Independence and Economic Performance
AbstractThis paper examines the influence that several factors may have on the relationship between legal Central Bank Independence (CBI), on the one hand, and the inflation and real GDP growth on the other. Using multivariate regression analysis for 39 OECD during the two periods, 1991-1998 and 1999-2006, we show that even if we include several control variables in the regression, the negative relationship between CBI and inflation, and the lack of relationship between CBI and the variability of real GDP growth remaining were unaffected. Also, we decompose the index of CBI into its four components and we examine whether they matter for inflation, for real GDP growth and for the sacrifice ratio.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Cyprus, Economics Research Centre in its journal Cyprus Economic Policy Review.
Volume (Year): 3 (2009)
Issue (Month): 1 (June)
Contact details of provider:
Postal: P O Box 20537, 1678 Nicosia
Phone: + 357 22892429
Fax: + 357 22892426
Web page: http://www.ucy.ac.cy/goto/ecorece/el-GR/HOME.aspx
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guy Debelle & Stanley Fischer, 1994.
"How independent should a central bank be?,"
Working Papers in Applied Economic Theory
94-05, Federal Reserve Bank of San Francisco.
- Giuseppe Diana & Moïse Sidiropoulos, 2004.
"Central Bank Independence, Speed of Disinflation and the Sacrifice Ratio,"
Open Economies Review,
Springer, vol. 15(4), pages 385-402, October.
- Giuseppe Diana & Moise Sidiropoulos, 2003. "Central Bank Independence, Speed of Disinflation and the Sacrifice Ratio," Working Papers of BETA 2003-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Kees Bouwman & Richard Jong-A-Pin & Jakob de Haan, 2005. "On the relationship between central bank independence and inflation: some more bad news," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 1(6), pages 381-385, November.
- M. Demertzis, 2001. "Low inflation at no cost? A numerical simulations exercise," DNB Staff Reports (discontinued) 72, Netherlands Central Bank.
- Hall, Peter A. & Franzese, Robert J., 1998. "Mixed Signals: Central Bank Independence, Coordinated Wage Bargaining, and European Monetary Union," International Organization, Cambridge University Press, vol. 52(03), pages 505-535, June.
- Marta Campillo & Jeffrey A. Miron, 1997.
"Why Does Inflation Differ across Countries?,"
in: Reducing Inflation: Motivation and Strategy, pages 335-362
National Bureau of Economic Research, Inc.
- Demertzis, Maria & Hughes Hallett, Andrew, 1998. "Independently Blue? Accountability and Independence in the New European Central Bank," CEPR Discussion Papers 1842, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Simon Johnson & Pablo Querubin & James A. Robinson, 2008.
"When Does Policy Reform Work? The Case of Central Bank Independence,"
NBER Working Papers
14033, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Simon Johnson & Pablo Querubin & James A. Robinson, 2008. "When Does POlicy Reform Work? The Case of Central Bank Independence," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 351-429.
- Eijffinger, S.C.W. & Schaling, E., 1992. "Central bank independence: Criteria and indices," Research Memorandum 548, Tilburg University, Faculty of Economics and Business Administration.
- Posen, Adam, 1998.
"Central Bank Independence and Disinflationary Credibility: A Missing Link?,"
Oxford Economic Papers,
Oxford University Press, vol. 50(3), pages 335-59, July.
- Adam Posen, 1995. "Central bank independence and disinflationary credibility: a missing link?," Staff Reports 1, Federal Reserve Bank of New York.
- Andreas Fischer, 1996. "Central bank independence and sacrifice ratios," Open Economies Review, Springer, vol. 7(1), pages 5-18, January.
- Cukierman, Alex & Webb, Steven B & Neyapti, Bilin, 1992. "Measuring the Independence of Central Banks and Its Effect on Policy Outcomes," World Bank Economic Review, World Bank Group, vol. 6(3), pages 353-98, September.
- Hayo, Bernd & Hefeker, Carsten, 2002. "Reconsidering central bank independence," European Journal of Political Economy, Elsevier, vol. 18(4), pages 653-674, November.
- Eijffinger, S.C.W. & Rooij, M. van & Schaling, E., 1996.
"Central Bank Independence: A Panel Data Approach,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-73023, Tilburg University.
- Eijffinger, S. & van Rool, M. & Schaling, E., 1994. "Central Bank Independence: A Panel Data Approach," Papers 9493, Tilburg - Center for Economic Research.
- Eijffinger, S.C.W. & Rooij, M. van & Schaling, E., 1994. "Central bank independence: A paneldata approach," Discussion Paper 1994-93, Tilburg University, Center for Economic Research.
- Alesina, Alberto & Gatti, Roberta, 1995. "Independent Central Banks: Low Inflation at No Cost?," American Economic Review, American Economic Association, vol. 85(2), pages 196-200, May.
- Brumm, Harold J, 2000. "Inflation and Central Bank Independence: Conventional Wisdom Redux," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 32(4), pages 807-19, November.
- Cukierman, Alex & Kalaitzidakis, Pantelis & Summers, Lawrence H. & Webb, Steven B., 1993. "Central bank independence, growth, investment, and real rates," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 95-140, December.
- Efthyvoulou, Georgios, 2011.
"Political cycles under external economic constraints: Evidence from Cyprus,"
Journal of Economics and Business,
Elsevier, vol. 63(6), pages 638-662.
- Georgios Efthyvoulou, 2008. "Political Cycles in a Small Open Economy and the Effect of Economic Integration: Evidence from Cyprus," Birkbeck Working Papers in Economics and Finance 0808, Birkbeck, Department of Economics, Mathematics & Statistics.
- Allan Silveira Dos Santos & Maria Helena Ambrosio Dias & Joilson Dias & Érica Oliveira Gonzales, 2014. "Monetary Programming, Turnover Of The Directors Of Central Bank And Interest Rate Determination: Reaction Function Applications For Brazil," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41th Brazilian Economics Meeting] 052, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2013. "The influence of political factors on commercial banks in Central European countries," Journal of Financial Stability, Elsevier, vol. 9(4), pages 759-777.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Shekersavva).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.