Central bank indepedence and inflation performance in transition economies: new evidence from a primary data approach

Ilieva, Janet and Gregoriou, Andros (2005) Central bank indepedence and inflation performance in transition economies: new evidence from a primary data approach. UNSPECIFIED. Manchester Metropolitan University. ISSN 1478 8209

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Abstract

In this paper we investigate the impact of Central Bank Independence (CBI) on average inflation and inflation variability for 22 transition economies over the time period of 1991-2003. We devise a new index to represent actual CBI rather then legislative independence. The empirical evidence suggests that Central Bank Independence lowers both average inflation and inflation variability.