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Central bank independence : A paneldata approach

Author

Listed:
  • Eijffinger, S.C.W.

    (Tilburg University, Center For Economic Research)

  • van Rooij, M.
  • Schaling, E.

Abstract

The present paper uses a panel-data estimation technique to combine the time series for individual countries--Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Switzerland, the United Kingdom and the United States. The authors postulated the response of central banks in these countries to inflation, economic growth, and current account surplus given the constraints to be the same among the sample countries. Differences between central bank independence come forward in a different structural pressure to lower or raise money market rates in these countries. The empirical results in this study coincide remarkably well with the legal indices of central bank independence. Copyright 1996 by Kluwer Academic Publishers
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Suggested Citation

  • Eijffinger, S.C.W. & van Rooij, M. & Schaling, E., 1994. "Central bank independence : A paneldata approach," Discussion Paper 1994-93, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:53e7c98f-aa5f-47f9-a8fb-d1873c47eaea
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    Keywords

    Central Banks; Panel Data;

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