A1 Vertaisarvioitu alkuperäisartikkeli tieteellisessä lehdessä
Quest for the best; How to measure central bank independence and show its relationship with inflation
Tekijät: Aleksandra Maslowska-Jokinen
Julkaisuvuosi: 2011
Journal: AUCO Czech Economic Review
Numero sarjassa: 2
Vuosikerta: 5
Numero: 2
Aloitussivu: 132
Lopetussivu: 161
Sivujen määrä: 30
ISSN: 1802-4696
The objective of this paper is to check measures for explanatory power of central bank
independence (CBI) in a series of econometric tests. Measures of central bank autonomy offer
a useful expression of the extent to which a central bank is able to keep the government away
from influencing a change in the inflation rate. The more a measure represents this idea, the easier
one can find a relation between the CBI value and the inflation rate. Results of estimations
show that proxies by Grilli et al. (1991) are strong regressors of inflation rate, contrary to those
by Cukierman et al. (1992). Moreover, estimation results challenge the belief that divergences
in CBI-inflation rate estimations are due to differences in institutional features across samples
of countries, not to differences in legal proxies of central bank independence. Already results
from a homogenous group of industrial countries indicate that some indices perform “better”
than others.