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