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Do central bank independence reforms matter for inflation performance?

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  • Mats Landström

Abstract

A difference-in-difference approach was used to investigate whether central bank independence (CBI) reforms matter for inflation, based on a novel dataset including the possible occurrence of such reforms in 132 countries during the period 1980 to 2005. CBI-reforms are found to have contributed to bringing down high inflation rates where those existed, but they seem unrelated to performance in low-inflation countries.

Suggested Citation

  • Mats Landström, 2011. "Do central bank independence reforms matter for inflation performance?," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 3(4), pages 320-335.
    • Handle: RePEc:ids:injbaf:v:3:y:2011:i:4:p:320-335
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