1. Is full (i.e. instrument and goal) central bank independence
... "output growth in industrialized countries was unrelated to CBI even after controlling structural factors that might influence growth". They did, however, find that if they used the TOR of central bank independence, that CBI did have a positive effect on growth in developing countries. They found that the difference in results for developed and developing countries may imply "dependence ... a result of this average inflation is actually higher because the government will have an increase in its unemployment costs if it increases interest rates to lower inflation levels. If a central bank...
- Word Count: 4086
- Approx Pages: 16
- Grade Level: Undergraduate