Inflation Performance and Constitutional Central Bank Independence: Evidence From Latin America and the Caribbean
IMF Working Papers, March 1, 2003
Source details
- Canonical URL
- Inflation Performance and Constitutional Central Bank Independence: Evidence From Latin America and the Caribbean
Other formats
Bibliographic details
- Authors: Eva Gutierrez
- Published: March 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451847406.001
Summary and central finding
- The paper explores the relationship between the constitutional entrenchment of central bank independence and inflation performance.
- Empirical studies for developing countries have not found a relationship between central bank independence proxied by the "de jure" independence established in the central bank law, and inflation.
- The paper argues that the constitution is likely to be better enforced than ordinary statutes owing to its higher legal rank.
- Empirical analysis in a sample of Latin American and Caribbean countries finds that those countries that entrench the independence of the central bank in the constitution have a better inflation performance.
Empirical approach and reasoning
- Comparative empirical analysis across Latin American and Caribbean countries.
- Key premise: constitutional entrenchment of central bank independence provides stronger legal protection than ordinary central bank laws ("de jure" independence), improving enforcement and outcomes.
- Focus contrasts constitutional provisions versus ordinary statutory provisions as determinants of inflation performance.
Policy implications and interpretations
- Constitutional entrenchment of central bank independence may be a more effective institutional design for achieving better inflation performance in developing-country contexts.
- Suggests that reforms aimed at strengthening central bank independence may be more credible and durable if incorporated into the constitution rather than only in ordinary legislation.
Key statistics and publication metadata
- Pages: 30
- Volume: 2003
- Issue: 053
- Series: Working Paper No. 2003/053
- DOI: https://doi.org/10.5089/9781451847406.001
- Stock No: WPIEA0532003
- ISBN: 9781451847406
- ISSN: 1018-5941
- Author: Eva Gutierrez
- Publication date: March 1, 2003
- Format noted on landing page: Chicago citation example includes access date "accessed 9/17/2026"
IMF Working Paper No. 2003/053 — Eva Gutierrez, March 1, 2003