EconPapers    
Economics at your fingertips  
 

Dynamic central bank independence indices and inflation rate: A new empirical exploration

Marco Arnone and Davide Romelli ()

Journal of Financial Stability, 2013, vol. 9, issue 3, 385-398

Abstract: It has been argued that economies with more independent central banks experience lower inflation over time. In this paper we show that this relationship is sensitive to the methodology through which central bank independence indices are constructed. We stress the importance of employing dynamic central bank independence indices in two ways. First, we perform unit root tests with structural breaks to verify if the implementation of central bank reforms represents a structural break for the inflation rate dynamics. Second, we implement a panel data analysis.

Keywords: Central banking; Central bank independence; Political independence; Economic independence; Inflation; Structural breaks (search for similar items in EconPapers)
JEL-codes: E31 E50 E52 E58 G28 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S157230891300020X
Full text for ScienceDirect subscribers only

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:eee:finsta:v:9:y:2013:i:3:p:385-398

DOI: 10.1016/j.jfs.2013.03.002

Access Statistics for this article

Journal of Financial Stability is currently edited by I. Hasan, W. C. Hunter and G. G. Kaufman

More articles in Journal of Financial Stability from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-07-01
Handle: RePEc:eee:finsta:v:9:y:2013:i:3:p:385-398