A Revisit of the Relation between Central Bank Independence and Inflation

Hsin-Yi Lin

MPRA Paper from University Library of Munich, Germany

Abstract: Conventional wisdom argues that the relation between central bank independence (CBI) and inflation is negative. However, empirical studies based upon regressing inflation rates on CBI tend to reject this hypothesis and show that there is no negative relationship. This article investigates the effect of CBI on inflation by quantile regression. The empirical result shows that the relation could be negative or positive for different quantiles of inflation. Quantile regression provides a method for investigating the relation completely between CBI and inflation.

Keywords: Central Bank Independence; Inflation; Quantile Regression. (search for similar items in EconPapers)
JEL-codes: E58 (search for similar items in EconPapers)
Date: 2009-08-15
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in The Empirical Economics Letters 2.9(2010): pp. 139-143

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/30398/1/MPRA_paper_30398.pdf original version (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:pra:mprapa:30398

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().