Measures of Central Bank Autonomy : Empirical Evidence for OECD, Developing, and Emerging Market Economies

Author/Editor:

Jean-François Segalotto ; Marco Arnone ; Bernard J Laurens

Publication Date:

October 1, 2006

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper presents an update of the Grilli-Masciandaro-Tabellini (GMT) index of central bank (CB) autonomy, based on CB legislation as of end-2003. The index is applied to a set of OECD and developing countries, and emerging market economies. For a smaller set of countries, the paper presents a reconstruction of the GMT index based on Cukierman (1992) and assesses changes in CB autonomy between 1992 and 2003. The results point to a significant increase in CB autonomy, in particular for developing countries. In most cases, this improvement has involved a three-stage process: an initial stage in which the political foundations for CB autonomy are laid; a second stage in which operational autonomy develops; and a final stage in which CBs gain further political autonomy in terms of policy formulation and the appointment of senior management.

Series:

Working Paper No. 06/228

Subject:

English

Publication Date:

October 1, 2006

ISBN/ISSN:

9781451864885/1018-5941

Stock No:

WPIEA2006228

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

38

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