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Dynamic central bank independence indices and inflation rate: A new empirical exploration

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TLDR
In this paper, the authors stress the importance of employing dynamic central bank independence indices in two ways: first, they perform unit root tests with structural breaks to verify if the implementation of central bank reforms represents a structural break for the inflation rate dynamics.
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This article is published in Journal of Financial Stability.The article was published on 2013-09-01. It has received 37 citations till now. The article focuses on the topics: Inflation & Independence.

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More effective than we thought: Central bank independence and inflation in developing countries

TL;DR: In this paper, the authors examined the effect of legal central bank independence on inflation in developing countries and found that higher central bank autonomy is associated with lower inflation rates, and that this effect is stronger the more democratic a country is, but also present in non-democratic countries.
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The Central Banker as Prudential Supervisor; Does Independence Matter?

TL;DR: In this paper, the authors study whether central bank independence and monetary policy arrangements can jointly influence the likelihood of policymakers assigning banking supervision to central banks, and they find that a higher degree of central bank operational independence is associated with a lower probability of supervisory powers being entrusted to the monetary authority.
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Ups and downs of central bank independence from the Great Inflation to the Great Recession: theory, institutions and empirics

TL;DR: In this article, the authors provide a systematic review of the economics of central bank independence, using a principal agent model, which explains how politicians can shape central bank governance in addressing macroeconomic shocks, taking into account both the wishes of the citizens and their own personal interests.
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Central bank independence and inflation in Africa: The role of financial systems and institutional quality

TL;DR: In this paper, the authors examined the effects of financial systems and the quality of political institutions on the effectiveness of central bank independence in achieving lower inflation in 48 African countries over the period 1970-2012.
References
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Book

Econometric Analysis of Cross Section and Panel Data

TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Journal ArticleDOI

Distribution of the Estimators for Autoregressive Time Series with a Unit Root

TL;DR: In this article, the limit distributions of the estimator of p and of the regression t test are derived under the assumption that p = ± 1, where p is a fixed constant and t is a sequence of independent normal random variables.
Book

Econometric Analysis of Panel Data

TL;DR: In this article, the authors proposed a two-way error component regression model for estimating the likelihood of a particular item in a set of data points in a single-dimensional graph.
Journal ArticleDOI

Rules Rather than Discretion: The Inconsistency of Optimal Plans

TL;DR: In this paper, it was shown that discretionary policy does not result in the social objective function being maximized, and that there is no way control theory can be made applicable to economic planning when expectations are rational.
Journal ArticleDOI

The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis

Pierre Perron
- 01 Nov 1989 - 
TL;DR: In this paper, the authors consider the null hypothesis that a time series has a unit root with possibly nonzero drift against the alternative that the process is "trend-stationary" and show how standard tests of the unit root hypothesis against trend stationary alternatives cannot reject the unit-root hypothesis if the true data generating mechanism is that of stationary fluctuations around a trend function which contains a one-time break.
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