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Inflation in Developing Countries: Does Central Bank Independence Matter? Author info | Abstract | Publisher info | Download info | Related research | Statistics Sturm, Jan-Egbert
de Haan, Jakob
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We analyse whether central bank independence (CBI) affects inflation in developing countries. For this purpose we have constructed a new data set for the turnover rate (TOR) of central bank governors for a very large sample of countries, which also covers the 1990s. We find that once various control variables are included, the CBI proxy is often not significant. We also conclude that in those regressions in which the CBI proxy is significant, the coefficient of the TOR becomes significant only after high inflation countries are added to the sample.
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Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number
CESifo Working Paper No. 511.
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Date of creation: 2001Date of revision:
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Keywords: Inflation central bank independence Other versions of this item:
References listed on IDEAS 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.: Forder, James, 1996.
"On the Assessment and Implementation of 'Institutional' Remedies ,"
Oxford Economic Papers ,
Oxford University Press, vol. 48(1), pages 39-51, January.
[Downloadable!] (restricted)
Temple, Jonathan, 1998.
"Central bank independence and inflation: good news and bad news ,"
Economics Letters ,
Elsevier, vol. 61(2), pages 215-219, November.
[Downloadable!] (restricted)
Cukierman, Alex & Webb, Steven B & Neyapti, Bilin, 1992.
"Measuring the Independence of Central Banks and Its Effect on Policy Outcomes ,"
World Bank Economic Review ,
Oxford University Press, vol. 6(3), pages 353-98, September.
Romer, David, 1993.
"Openness and Inflation: Theory and Evidence ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 108(4), pages 869-903, November.
[Downloadable!] (restricted)
Other versions: Haan, Jakob de & Kooi, Willem J., 2000.
"Does central bank independence really matter?: New evidence for developing countries using a new indicator ,"
Journal of Banking & Finance ,
Elsevier, vol. 24(4), pages 643-664, April.
[Downloadable!] (restricted)
Eijffinger, S-C-W & de Haan, J, 1996.
"The Political Economy of Central-Bank Independence ,"
Princeton Studies in International Economics
19, International Economics Section, Departement of Economics Princeton University,.
Other versions: Berger, Helge & de Haan, Jakob & Eijffinger, Sylvester C W, 2001.
" Central Bank Independence: An Update of Theory and Evidence ,"
Journal of Economic Surveys ,
Blackwell Publishing, vol. 15(1), pages 3-40, February.
[Downloadable!] (restricted)
Other versions:
Berger, Helge & Haan, Jakob de & Eijffinger, Sylvester C.W, 2000.
"Central Bank Independence: An Update of Theory and Evidence ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] Berger, Helge & de Haan, Jakob & Eijffinger, Sylvester C W, 2000.
"Central Bank Independence: An Update of Theory and Evidence ,"
CEPR Discussion Papers
2353, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000.
"New tools and new tests in comparative political economy - the database of political institutions ,"
Policy Research Working Paper Series
2283, The World Bank.
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Full
references Cited by : (explanations , 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.)
Carlos de Resende, 2007.
"Cross-Country Estimates of the Degree of Fiscal Dominance and Central Bank Independence ,"
Working Papers
07-36, Bank of Canada.
[Downloadable!]
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.
[Downloadable!] (restricted)
Fernando M. Gonçalves & Márcio Holland & Andrei D. Spacov, 2005.
"Can Jurisdictional Uncertainty And Capital Controls Explain The High Level Of Real Interest Rates In Brazil? Evidence From Panel Data ,"
Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting]
028, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
[Downloadable!]
Other versions: Marc-André Gosselin, 2007.
"Central Bank Performance under Inflation Targeting ,"
Working Papers
07-18, Bank of Canada.
[Downloadable!]
Oya Celasun & Gaston R. Gelos & Alessandro Prati, 2004.
"Obstacles to Disinflation: What is the Role of Fiscal Expectations? ,"
IMF Working Papers
04/111, International Monetary Fund.
[Downloadable!]
Other versions: Bernd Hayo & Stefan Voigt, 2005.
"Inflation, Central Bank Independence and the Legal System ,"
Money Macro and Finance (MMF) Research Group Conference 2005
57, Money Macro and Finance Research Group.
[Downloadable!]
Other versions: Alpanda, Sami & Honig, Adam, 2007.
"Political Monetary Cycles and a New de facto Ranking of Central Bank Independence ,"
MPRA Paper
5898, University Library of Munich, Germany.
[Downloadable!]
Doyle, Matthew & Falk, Barry L., 2006.
"Do Asymmetric Central Bank Preferences Help Explain Observed Inflation Outcomes? ,"
Staff General Research Papers
12501, Iowa State University, Department of Economics.
[Downloadable!]
Stefan Krause & Fabio Mendez, 2005.
"Institutions, Arrangements, and Preferences for Inflation Stability: Evidence and Lessons from a Panel Data Analysis ,"
Emory Economics
0501, Department of Economics, Emory University (Atlanta).
[Downloadable!]
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