Any Link Between Legal Central Bank Independence and Inflation? Evidence from Latin America and the Caribbean

This paper reviews central bank legislation in 24 countries in Latin America and the Caribbean during the 1990s. Using panel regressions, we find a negative relationship between legal central bank independence (CBI) and inflation. This result holds for three alternative measures of CBI and after con...

Full description

Main Author: Jacome, Luis Ignacio
Other Authors: Vazquez, Francisco F.
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2005, 2005
Series:IMF Working Papers; Working Paper
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 01990nmm a2200397 u 4500
001 EB000928497
003 EBX01000000000000000722093
005 00000000000000.0
007 cr|||||||||||||||||||||
008 150128 ||| eng
020 |a 1451860943 
020 |z 9781451860948 
020 |a 9781451860948 
100 1 |a Jacome, Luis Ignacio 
245 0 0 |a Any Link Between Legal Central Bank Independence and Inflation? Evidence from Latin America and the Caribbean  |h electronic resource  |c Luis Ignacio Jacome 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2005, 2005 
300 |a 41 p. 
651 4 |a Venezuela, Republica Bolivariana de 
651 4 |a El Salvador 
651 4 |a Ecuador 
651 4 |a Brazil 
651 4 |a Latin America 
651 4 |a Argentina 
653 |a Monetary Fund 
653 |a Structural Reform 
653 |a Monetary Policy 
653 |a Central Banks 
700 1 |a Vazquez, Francisco F. 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers; Working Paper 
028 5 0 |a 10.5089/9781451860948.001 
856 |u http://elibrary.imf.org/view/IMF001/00357-9781451860948/00357-9781451860948/00357-9781451860948.xml  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a This paper reviews central bank legislation in 24 countries in Latin America and the Caribbean during the 1990s. Using panel regressions, we find a negative relationship between legal central bank independence (CBI) and inflation. This result holds for three alternative measures of CBI and after controlling for international inflation, banking crises, and exchange regimes. The result is also robust to the inclusion of a broader indicator of structural reforms that usually go along with changes in central bank legislation, illustrating the complementary nature of various aspects of economic reform. The paper fails, however, to find a causal relationship running from CBI to inflation