Central Bank Independence and Macroeconomic Stability: A Cross Country Analysis

Central Bank Independence and Macroeconomic Stability: A Cross Country Analysis

Author by Dr. Oladapo Gbenga Awolaja

Journal/Publisher: Ilorin Journal Of Business And Social Sciences

Volume/Edition: 11

Language: English

Pages: 204 - 217

Abstract

The independence of a nation’s Central Bank is crucial to the management of price stability and welfare of the citizens. Worldwide there is the propensity to ensure that inflation  does not render the purchasing  power of the people useless, hence the charter of Central Bank charges them to control this ”monster” . Using four countries in Africa this study attempts to examine the impact of Central Bank on inflation control and its welfare consequences based on the qualitative variables approach. However, we did not find significant  impact of the Central Bank on the level of welfare of the people, based on some factors like frequent changes in government policies and political instability among others. We expect more pragmatic performance in the future as the Bank grows and countries embrace democratic principles of governance


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