Title: Central bank independence and the price-output-variability trade-off

Authors: Mats Landström

Addresses: School of Technology and Business Studies, Dalarna University, SE-791 88 Falun, Sweden

Abstract: Data on central bank independence (CBI) and implementation dates of CBI-reforms were used to investigate the relationship between CBI and a possible trade-off between inflation variability and output variability. No such trade-off was found, but there might still be stabilisation gains from CBI-reform.

Keywords: price stability; output stability; monetary policy; Taylor curve; inflation variability; output variability; central bank independence; central banks; banking reform.

DOI: 10.1504/IJMEF.2014.065089

International Journal of Monetary Economics and Finance, 2014 Vol.7 No.2, pp.122 - 134

Received: 02 Apr 2014
Accepted: 23 May 2014
Published online: 03 Mar 2015 *

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