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Does Central Bank Independence
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Excerpt from Essay:
Does Central Bank Independence in Transition Economies bring lower inflation
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Conclusion:
While it may not be possible to equate the Central Bank in all countries with the autonomy enjoyed by its Judiciary, it is nevertheless important that the Central bank be vested with enough authority to formulate economic policies that would have far reaching consequences in the control of inflation. Material examined so far though point out that it is ideal to have a free Central Bank, there is no conclusive evidence to show that the autonomy of the Bank is a sin qua non for the control of inflation or for that matter any economic situation. The Central Banks independence alone may not bring down the inflation in a developing economy
References
Bernanke, Ben S; Laubach, Thomas; Mishkin, Frederic S. 2001., Inflation targeting: lessons from the international experience. Princeton University Press......
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