On the relationship between central bank independence and inflation: some more bad news
Using the quantile regression approach it is shown for a sample of 57 developing countries that the relationship between central bank independence and inflation over the period 1975--98 is not robust. Only in the higher quantiles do we find a significant relationship between independence and inflation. This conclusion is based on a multivariate model for inflation, in which central bank independence is proxied by the central bank turnover rate.
Volume (Year): 1 (2005)
Issue (Month): 6 (November)
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