Central Bank Independence,Political Regimes,and the Sacrifice Ratio: A Replication Study of Caporale and Caporale (2008) |
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| Authors: | HAJIME KATAYAMA NATALIA PONOMAREVA MALVIN SHARMA |
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| Affiliation: | 1. Hajime Katayama is at the Discipline of Economics and the Discipline of Operations Management and Econometrics, University of Sydney, and at the School of Commerce, Waseda University (E‐mail: hajime.katayama@waseda.jp).;2. Natalia Ponomareva is at the Department of Economics, Macquarie University (E‐mail: natalia.ponomareva@mq.edu.au).;3. Malvin Sharma is at the Discipline of Economics, University of Sydney (E‐mail: malvin.sharma@sydney.edu.au). |
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| Abstract: | A recent article by Caporale and Caporale (2008, this Journal) provides an important finding on the determinants of the sacrifice ratio: central bank independence is not a determining factor for the sacrifice ratio when political regimes and other factors are controlled for. Our replication study shows that their result is driven by errors in the data. With correct data, it can be found that central bank independence is positively and significantly correlated with the sacrifice ratio, even when the nature of the political regime is controlled for. |
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| Keywords: | E31 E52 F41 central bank independence openness political regimes sacrifice ratio |
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