{
  "title": "A New Measure of Central Bank Independence",
  "publication": "IMF Working Papers, February 23, 2024",
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  "summary": "This paper constructs a new index for measuring de jure central bank independence, the first entirely new index in three decades.",
  "sections": [
    {
      "heading": "Index construction and purpose",
      "content": "- Constructs a new index for measuring de jure central bank independence, described as the first entirely new index in three decades.\n- Distills ten key metrics to measure central bank independence, simplifying frameworks that previously included upwards of forty distinct variables.\n- Treats dimensions such as the status of the chief executive as composite metrics to prevent overstating the independence of statutory schemes."
    },
    {
      "heading": "Data sources and weighting",
      "content": "- Draws on a comprehensive dataset from the IMF’s Central Bank Legislation Database (CBLD) and Monetary Operations and Instruments Database (MOID).\n- Weightings are derived from a survey of 87 respondents, mostly consisting of central bank governors and general counsels.\n- Replaces the subjective weighting systems relied on in the existing literature with an empirically grounded alternative."
    },
    {
      "heading": "Improvements over existing indices",
      "content": "- Improves upon the Cukierman, Webb, and Neyapti (CWN) index (the de facto standard since 1992) and recent extensions by Garriga (2016) and Romelli (2022).\n- Includes areas absent from the CWN index, such as:\n  - board composition,\n  - financial independence,\n  - budgetary independence."
    },
    {
      "heading": "Key features and contributions",
      "content": "- Simplifies measurement by focusing on ten distilled metrics while preserving technical accuracy of legal and institutional features.\n- Introduces composite treatment for certain dimensions to avoid overstatement of independence under statutory schemes.\n- Provides an empirically grounded weighting scheme based on expert survey responses."
    },
    {
      "heading": "Presentation and further work",
      "content": "- This paper presents the key features of the new index.\n- A companion, forthcoming paper will provide detailed findings by country/region, income level, and exchange rate regime.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/02/23/a-new-measure-of-central-bank-independence-545270"
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    "Authors: Tobias Adrian, Ashraf Khan, Lev Menand",
    "Published: February 23, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400268410.001",
    "Constructs a new index for measuring de jure central bank independence, described as the first entirely new index in three decades.",
    "Distills ten key metrics to measure central bank independence, simplifying frameworks that previously included upwards of forty distinct variables.",
    "Treats dimensions such as the status of the chief executive as composite metrics to prevent overstating the independence of statutory schemes.",
    "Draws on a comprehensive dataset from the IMF’s Central Bank Legislation Database (CBLD) and Monetary Operations and Instruments Database (MOID).",
    "Weightings are derived from a survey of 87 respondents, mostly consisting of central bank governors and general counsels.",
    "Replaces the subjective weighting systems relied on in the existing literature with an empirically grounded alternative.",
    "Improves upon the Cukierman, Webb, and Neyapti (CWN) index (the de facto standard since 1992) and recent extensions by Garriga (2016) and Romelli (2022).",
    "Includes areas absent from the CWN index, such as:",
    "Simplifies measurement by focusing on ten distilled metrics while preserving technical accuracy of legal and institutional features.",
    "Introduces composite treatment for certain dimensions to avoid overstatement of independence under statutory schemes.",
    "Provides an empirically grounded weighting scheme based on expert survey responses.",
    "This paper presents the key features of the new index.",
    "A companion, forthcoming paper will provide detailed findings by country/region, income level, and exchange rate regime.",
    "**Working Paper**"
  ],
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