Measures of Central Bank Autonomy: Empirical Evidence for OECD, Developing, and Emerging Market Economies
IMF Working Papers, October 1, 2006
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- Measures of Central Bank Autonomy: Empirical Evidence for OECD, Developing, and Emerging Market Economies
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Bibliographic details
- Authors: Jean-François Segalotto, Marco Arnone, Bernard J Laurens
- Published: October 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451864885.001
Objective and methodology
- Updates the Grilli-Masciandaro-Tabellini (GMT) index of central bank (CB) autonomy using CB legislation as of end-2003.
- Applies the updated GMT index to a set of OECD, developing, and emerging market economies.
- For a smaller set of countries, reconstructs the GMT index based on Cukierman (1992) and assesses changes in CB autonomy between 1992 and 2003.
Key empirical findings
- The results point to a significant increase in CB autonomy, in particular for developing countries.
- The evolution of CB autonomy typically follows a three-stage process:
- Initial stage: political foundations for CB autonomy are laid.
- Second stage: operational autonomy develops.
- Final stage: CBs gain further political autonomy in terms of policy formulation and the appointment of senior management.
Scope and subjects covered
- Country groups: OECD countries, developing countries, emerging market economies.
- Legal basis: assessment grounded in central bank legislation as of end-2003.
- Time comparisons: reconstructed GMT index allows assessment of changes between 1992 and 2003 for a subset of countries.
- Subjects and keywords listed on the publication: Banking, Central bank autonomy, Central bank legislation, Central banks, Emerging and frontier financial markets, Financial markets, Legal support in revenue administration, Revenue administration; Africa, autonomy, autonomy measure, CB autonomy, central bank, Central bank autonomy, Central bank legislation, country, developing country, economic autonomy, Emerging and frontier financial markets, GMT indicator, GMT methodology, instrument autonomy, Legal support in revenue administration, lending to the government, OECD countries' performance, OECD country, OECD-member country, policy autonomy, political autonomy, WP.