| Abstract: | Abstract Many countries have recently strengthened the autonomy of their central banks in the effort to protect central bankers from government influences. This article reviews and extends the relevant literature to propose a new ranking of central bank independence in contrast to those originated by Bade and Parking, and Cukierman. The analysis shows a bivariate relationship between independence and inflation rates in 12 European Union countries in the EMS era. However, neither inflation nor its standard deviation had any statistical significance effect on real GDP growth. The procedure reveals that findings are, sometimes, index-specific. |
