Int. J. of Monetary Economics and Finance   »   2014 Vol.7, No.2



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


Author: Mats Landström


Address: 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


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


Submission date: 01 Apr 2014
Date of acceptance: 23 May 2014
Available online: 12 Oct 2014



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