Legal and actual central bank independence

I Kadek Dian Artha and Jakob de Haan

No 10004, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: Indicators of central bank independence (CBI) based on the interpretation central bank laws in place may not capture the actual independence of the central bank. This paper develops an indicator of actual independence of the Bank Indonesia (BI), the central bank of Indonesia, for the period 1953-2008 and compares it with a new legal CBI indicator based on Cukierman (1992). The indicator of actual independence captures institutional and economic factors that affect CBI. We find that before 1999, legal and actual independence of BI diverged substantially. After a new central bank law was enacted, the legal independence of BI increased and converged to actual independence.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/11370/cb11e5ee-7cf3-49e0-b02c-423144f6cbed (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://hdl.handle.net/11370/cb11e5ee-7cf3-49e0-b02c-423144f6cbed [302 Found]--> https://research.rug.nl/en/publications/cb11e5ee-7cf3-49e0-b02c-423144f6cbed [301 Moved Permanently]--> https://research.rug.nl/en/publications/legal-and-actual-central-bank-independence-a-case-study-of-bank-o)

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:gro:rugsom:10004

Access Statistics for this paper

More papers in Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().