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.
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