Inflation in Developing Countries: Does Central Bank Independence Matter?
AbstractWe 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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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 511.
Date of creation: 2001
Date of revision:
Inflation; central bank independence;
Other versions of this item:
- Sturm, Jan-Egbert & Haan, Jakob de, 2001. "Inflation in developing countries: does Central Bank independence matter?," CCSO Working Papers 200101, University of Groningen, CCSO Centre for Economic Research.
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