Yıl 2018, Cilt 1, Sayı 1, Sayfalar 46 - 65 2018-12-21


This paper  aims to approach an overheated topic in the context of dynamic economies and modern democracies, namely the central bank independence related to the adopted monetary policy strategy, as well as their impact on the good functioning of the economy. The independence of the central bank (CBI) is a pillar for the effectiveness of the monetary policy, providing the premise of a credible and depolitised institution. To put it differently, a high level of CBI may be linked to a smaller level of corruption and political interference; therefore, the central bank has an appropriate margin of manoeuvre, which increases financial stability. The central bank independence has been measured under various forms after signing the Maastricht Treaty in 1992, but the initiators are Cukierman and GMT, who provided the fundamental indices. Measuring the central bank autonomy both legally (de jure) and informally (de facto)  represents a complex endeavour in a dynamic and volatile socio-economic context. This paper’s objective is to calculate CBI starting from the CUK and GMT indices, but also to empirically approach the relationship between CBI and macroeconomic performance, namely price stability and output (GDP). Hence, the study starts from the hypothesis of a correlation between the GDP and CBI, on the one hand, and between inflation and CBI, on the other hand. Numerous studies have shown an insignificant positive correlation between independence and GDP, and also the fact that a negative correlation between inflation and CBI is not generally valid. Accordingly, this paper aims to demonstrate whether CBI is a viable determinant of growth and inflation volatility. The analyzed time series encompass the 2007-2016 period of time  and the subject of the research is the National Bank of Romania, whose credibility in the postcrisis era is high, due to the lack of bank failures and to the general stability and soundness of the banking system.


central bank independence, economic growth, inflation
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Birincil Dil en
Konular İktisat
Dergi Bölümü Makaleler
Yazarlar

Yazar: Irina - Raluca Badea (Sorumlu Yazar)
Kurum: University of Craiova
Ülke: Romania


Bibtex @konferans bildirisi { intraders460478, journal = {InTraders Uluslararası Ticaret Dergisi}, issn = {}, eissn = {2667-4408}, address = {Kürşat ÇAPRAZ}, year = {2018}, volume = {1}, pages = {46 - 65}, doi = {}, title = {Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis}, key = {cite}, author = {Badea, Irina - Raluca} }
APA Badea, I . (2018). Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis. InTraders Uluslararası Ticaret Dergisi, 1 (1), 46-65. Retrieved from http://dergipark.gov.tr/intraders/issue/41434/460478
MLA Badea, I . "Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis". InTraders Uluslararası Ticaret Dergisi 1 (2018): 46-65 <http://dergipark.gov.tr/intraders/issue/41434/460478>
Chicago Badea, I . "Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis". InTraders Uluslararası Ticaret Dergisi 1 (2018): 46-65
RIS TY - JOUR T1 - Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis AU - Irina - Raluca Badea Y1 - 2018 PY - 2018 N1 - DO - T2 - InTraders Uluslararası Ticaret Dergisi JF - Journal JO - JOR SP - 46 EP - 65 VL - 1 IS - 1 SN - -2667-4408 M3 - UR - Y2 - 2018 ER -
EndNote %0 InTraders Uluslararası Ticaret Dergisi Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis %A Irina - Raluca Badea %T Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis %D 2018 %J InTraders Uluslararası Ticaret Dergisi %P -2667-4408 %V 1 %N 1 %R %U
ISNAD Badea, Irina - Raluca . "Central bank independence and its impact on the macroeconomic performance. Evidence from Romania before and after crisis". InTraders Uluslararası Ticaret Dergisi 1 / 1 (Aralık 2018): 46-65.