Does Central Bank Independence Affect Inflation?

Vera Gojčaj
Additional contact information
Vera Gojčaj: Central Bank of Montenegro, Podgorica, Montenegro

Journal of Central Banking Theory and Practice, 2025, vol. 14, issue 3, 161-183

Abstract: The objective of this paper is to analyze the impact of central bank independence on inflation in Western Balkan countries, from 2010q1 to 2022q4. In this paper the panel Autoregressive Distributed Lags (ARDL) model for six Western Balkan countries is used to analyse the effects of central bank independence on inflation. Results show that central bank independence has a negative effect on inflation in countries studied. These findings help management of banks and policymakers to find other monetary tools to reduce inflation and develop more effective regulations. The paper recommends central banks to use central bank independence to fight inflation.

Keywords: central bank; independence; Western Balkan; inflation. (search for similar items in EconPapers)
JEL-codes: E31 E50 E52 E58 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cbcg.me/repec/cbk/journl/vol14no3-7.pdf (application/pdf)

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:cbk:journl:v:14:y:2025:i:3:p:161-183

Access Statistics for this article

More articles in Journal of Central Banking Theory and Practice from Central bank of Montenegro Contact information at EDIRC.
Bibliographic data for series maintained by ().