Garriga, Ana Carolina and Rodriguez, Cesar M (2023) Central Bank Independence and Inflation Volatility in Developing Countries. Economic Analysis and Policy, 78. pp. 1320-1341. DOI https://doi.org/10.1016/j.eap.2023.05.008
Garriga, Ana Carolina and Rodriguez, Cesar M (2023) Central Bank Independence and Inflation Volatility in Developing Countries. Economic Analysis and Policy, 78. pp. 1320-1341. DOI https://doi.org/10.1016/j.eap.2023.05.008
Garriga, Ana Carolina and Rodriguez, Cesar M (2023) Central Bank Independence and Inflation Volatility in Developing Countries. Economic Analysis and Policy, 78. pp. 1320-1341. DOI https://doi.org/10.1016/j.eap.2023.05.008
Abstract
This paper analyzes the effects of legal central bank independence (CBI) on inflation volatility in developing countries. We discuss why CBI should curb inflation volatility, independently from its effect via lowering inflation levels. Empirical analyses in a sample of 96 developing countries between 1980 and 2014 show that CBI is directly and unconditionally associated with lower volatility. The magnitude of this effect is larger in more democratic countries even after accounting for the endogeneity of CBI and inflation. Our results are robust to alternative measurements of the main variables, different model specifications, and methodologies.
Item Type: | Article |
---|---|
Additional Information: | Source info: Economic Analysis and Policy. https://doi.org/10.1016/j.eap.2023.05.008 |
Uncontrolled Keywords: | Central bank independence; democracy; measurement; volatility; developing countries |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Government, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 15 May 2023 16:25 |
Last Modified: | 16 May 2024 21:51 |
URI: | http://repository.essex.ac.uk/id/eprint/35617 |
Available files
Filename: 1-s2.0-S0313592623000966-main.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 4.0