Central Bank Independence: An Update of Theory and Evidence |
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| Authors: | Helge Berger Jakob de Haan & Sylvester CW Eijffinger |
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| Institution: | University of Munich,;University of Groningen,;Tilburg University |
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| Abstract: | 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. |
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| Keywords: | Central Bank Independence Inflation Labour Markets |
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