The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa

Kyalisiima Prisca and Prof. Yang Jun
Additional contact information
Kyalisiima Prisca: Ph.D Candidate, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China. Lecturer in the Department of Banking and Finance, Mountains of the Moon University, Fort Portal, Uganda.
Prof. Yang Jun: School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China.

International Journal of Science and Business, 2020, vol. 4, issue 12, 38-52

Abstract: This study seeks to examine the impact of central bank independence and transparency on inflation in sub-Saharan Africa (SSA). The role of central banks is to maintain price stability in the economy. Many scholars have independent and transparent writings due to the image of the Central Banks. On the other hand, other scholars have made clear the negative effects of high inflation as the main macroeconomic indicator used in this paper. In practice, some current studies have concluded that central bank independence and transparency lead to macroeconomic performance (low inflation). Empirical use of regression and analysis is performed for 15 sub-Saharan African countries with data for the period 1998–14 using panel fixed effects model. This paper contributes to research by exploring more than central bank independence as used by many scholars, and adds to literature about Central Bank Independence in Sub Saharan Africa. The results of this research study show that central bank independence and transparency (participant term; CBI_Transp) are statistically significant at 95%, so central bank independence and transparency go hand in hand; reducing inflation in sub-Saharan Africa. From the regression output, we conclude that the interactive variable and the single variables have positive coefficients, which is contrary to the main neoclassical theory used in this paper.

Keywords: Central Bank Independence; Transparency; Inflation; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijsab.com/wp-content/uploads/623.pdf (application/pdf)
https://ijsab.com/volume-4-issue-12/3355 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aif:journl:v:4:y:2020:i:12:p:38-52

Access Statistics for this article

International Journal of Science and Business is currently edited by Dr. Md Shamim Hossain

More articles in International Journal of Science and Business from IJSAB International
Bibliographic data for series maintained by Farjana Rahman ().