The Measurement of Central Bank Autonomy: Survey of Models, Indicators, and Empirical Evidence
Marco Arnone and
No 2006/227, IMF Working Papers from International Monetary Fund
This paper presents a survey of the literature on the measurement of central bank autonomy. We distinguish inputs that constitute the building blocks in the literature, and the literature that builds on them. Issues including sensitivity analysis, robustness, and endogeneity are discussed. The review shows that empirical evidence regarding the beneficial effects of central bank autonomy is substantial, although some technical issues still remain for further research. In particular, central bank autonomy raises the issue of subjecting the monetary authorities to democratic control; this calls for additional research on the linkages between central bank autonomy and accountability and transparency. Additional empirical analysis on the relationship between the financial strength of the central bank and its de facto autonomy, and between its autonomy and financial stability, would also be desirable.
Keywords: WP; CB autonomy; central bank; OECD country; turnover rate; exchange rate; Central bank autonomy; political autonomy; economic autonomy; autonomy index; autonomy measure; CB independence; inflation performance; negative correlation; CB autonomy measure; debt monetization; CB credibility; credit demand; CB conservativeness; de jure CB autonomy; Inflation; Price stabilization; Legal support in revenue administration; Wage bargaining; Government debt management; Baltics; Sub-Saharan Africa; Global (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2006/227
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().