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Central Bank Independence: An Update of Theory and Evidence
Author(s) -
Berger Helge,
De Haan Jakob,
Eijffinger Sylvester C.W.
Publication year - 2001
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/1467-6419.00131
Subject(s) - independence (probability theory) , economics , inflation (cosmology) , central bank , inflation targeting , empirical evidence , macroeconomics , econometrics , keynesian economics , monetary economics , monetary policy , philosophy , mathematics , statistics , physics , epistemology , theoretical physics
This paper reviews recent research on central bank independence (CBI). After we have distinguished between independence and conservativeness, research in which the inflationary bias is endogenised is reviewed. Finally, the various challenges that have been raised against previous empirical findings on CBI are discussed. We conclude that the negative relationship between CBI and inflation is quite robust.