Modelling Central Bank Independence and Inflation: Deus Ex Machina?

Dumiter Florin (), Petre Brezeanu (), Radu Claudia () and Turcas Florin ()
Additional contact information
Dumiter Florin: PhD ”Vasile Goldis” Western University of Arad, Romania
Radu Claudia: PhD ”Vasile Goldis” Western University of Arad, Romania
Turcas Florin: PhD Candidate The Bucharest Academy of Economic Studies

Studia Universitatis „Vasile Goldis” Arad – Economics Series, 2015, vol. 25, issue 4, 56-69

Abstract: Central bank independence represents the core element of assessing the complex relationship between government and central bank, having at background the fundamental issue of a free monetary policy decision-making process from the hands of the political circle. However, central bank independence is a multilevel concept within some social, economic and behavioral implications both for the central banks and for the society at whole. Central bank independence is needed in order to establish an autonomous central bank with a high degree of freedom in choosing its’ instruments, objectives, techniques and tactics. Moreover, a high degree of transparency for the public disclosure and monitoring of central bank operation and transaction is needed for the social barometer of the central bank. Consequently the central bank must have a high degree of accountability and responsibility vis - á - vis of the most democratic institution, i.e. Parliament. In this article it is presented a comprehensive study regarding the complex relationship between central bank independence and inflation by modeling these two monetary policy panacea, in order to make a fine tuning regarding the causal relationship established in a heterodox manner.

Keywords: monetary policy; central bank transparency; central bank accountability; inflation performances; political influence; central bank decision-making process; bureaucratic institution (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/sues-2015-0027 (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:vrs:suvges:v:25:y:2015:i:4:p:56-69:n:5

DOI: 10.1515/sues-2015-0027

Access Statistics for this article

Studia Universitatis „Vasile Goldis” Arad – Economics Series is currently edited by Florin Cornel Dumiter

More articles in Studia Universitatis „Vasile Goldis” Arad – Economics Series from Sciendo
Bibliographic data for series maintained by Peter Golla ().