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Central bank independence and inflation revisited [PDF]
Central bank independence, Heterogeneous panel model, Inflation, Monetary institutions, Turnover of central bank governors, E58,
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Central-bank independence revisited
SSRN Electronic Journal, 2018In major advanced economies, including Australia, independent central banks have become established institutions. Yet there are reasons why the sustained presence of such an institution in a democratic society should be challenged. This paper considers the arguments usually advanced for central bank independence, and the underlying arguments for a ...
G.C. Harcourt +2 more
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Central bank independence refers to the absence of influence of politicians on monetary policymaking. Theory predicts that countries with an independent and "conservative" (inflation-averse) central bank will have lower inflation than those in which monetary policy is controlled by the government. Most empirical evidence supports this prediction. Still,
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