Central bank independence: monetary policies in selected jurisdictions (II)

Ayadi, Felix and Ojo, Marianne (2013): Central bank independence: monetary policies in selected jurisdictions (II).

Abstract

Through an investigation of selected jurisdictions, this paper aims to contribute to the extant literature in investigating the relationship between central bank independence and price stability, as well as how such a relationship varies between different jurisdictions – even though it is widely argued that political and legislative interference is often contributory to price instability.

This paper employs times series data to study the dynamics of central bank independence. It also employs bivariate cointegration methodology to examine the long-term relationship between inflation index and the different measures of financial development.

• Item Type: MPRA Paper
• Language: English
• Keywords: inflation; price stability; central bank independence; monetary policy; financial stability
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; K - Law and Economics > K2 - Regulation and Business Law

References

Adebiyi, M.A. (2002). “Is Financial Sector Liberalization the Cause of Banking Fragility in Nigeria?” African Review of Money, Finance and Banking, 23-40.

Alawode, A. and Ikhide, S.I. (1991). “Bank Liability Management, Structural Adjustment and Monetary Policy in Nigeria.” Nigerian Journal of Economic and Social Studies, 33, No 2, 121-136.

Arestis, P. and Demetriades, P. (1997). “Financial Development and Economic Growth: Assessing the Evidence.” The Economic Journal, Volume 107, #442, 783-799.

Ayadi, O.F. (1996). “Marketing of Bank Services, Regulation, and Bank Profitability in an Emerging Banking System.” African Review of Money, Finance and Banking, 1/2, 107-119.

Ayadi, O.F. and Hyman, L.(2006). “Financial Liberalization and Price Rigidity in the Nigerian Banking System.” Managerial Finance, Forthcoming.

Ayadi, R. and Mouley, S. (2013) Monetary Policies, Banking Systems, Regulation and Growth in the Southern Mediterranean Palgrave MacMillan Studies, Palgrave (15. December 2013)

Ayadi, R., Martin, M., Masciandaro, D. and Vega-Pansini, R. (2012) New Paradigms in Banking, Financial Markets and Regulation? (April 2012)

Aziakpono, M. and Babatope-Obasa, S. (2003). “Financial Liberalization, Currency Substitution and Savings in Nigeria: Evidence From Cointegration and Error Correction Modeling.” A paper presented at the 8th Annual Conference on Econometric Modeling for African Econometrics Society, University of Stellenbosch, South Africa.

Beck, T., Demirguc-Kunt A., and Levine R. (2000). “A New Database on Financial Development and Structure.” World Bank Economic Review, 14 (3), pp.597-605.

Bibilari, O. (1962). “Banking in Nigeria is Booming.” New Pittsburgh Courier, Volume 3, Issue 7 (May 19), p. 13.

Caprio,G. and Klingebiel, D. (1995). “Dealing with Bank Insolvencies: Cross Country Experience.” Washington, D.C., The World Bank.

Central Bank of Nigeria, (1986). Annual Report and Statement of Accounts, December 31, Central Bank of Nigeria.

Chete, L.N. (2001). “The Nigerian Banking Crisis: What Role Did the Macroeconomy Play?” Savings and Development, 25, No 1,

Fischer, S. (1995). “Central-Bank Independence Revisited.” The American Economic Review, 85 (2), 201-206.

Fraser, B.W. (19940. “Central Bank Independence: What Does it Mean?” Reserve Bank of Australia Bulletin, December, 1-8.

Haan, J. de and Kooi, W. (2000). “Does Central Bank Independence Really Matter? New Evidence for Developing Countries Using a New Indicator.” Journal of Banking and Finance, 24 (4), 643-664.

Ikhide, S.I. and Alawode, A.A. (2001). “Financial Sector Reforms, Macroeconomic Instability, and the Order of Economic Liberalization: The Evidence from Nigeria.” AERC Research Paper #112, African Economic Research Consortium.

Maliszewski, W.S. (2000). “Central Bank Independence in Transition Economies.” Economics of Transition, 8 (3), 749-789.

Odedokun, M.O. (1990). “A Balance Sheet Approach to Evaluating Central Bank Behaviour: Econometric Results from Quarterly Data.” Nigerian Journal of Economic and Social Studies, 32 (1), 45-67.

Olalusi, F. (1992). Introduction to Banking. Ibadan: Evans Brothers (Nigeria Publishers) Limited.

Otero, J. and Ramirez, M. (2006). “Inflation Before and After Central Bank Independence: The Case of Colombia.” Journal of Development Economics, 79, 168-182.

Panagiotidis, T. and Triampella, A. (2006). “Central Bank Independence and Inflation: The Case of Greece.” Revista de Economía del Rosario (Colombia), 9 (1), 95-109.

Sanusi, J.O. (2002a). “The Evolution of Monetary Management in Nigeria and Its Impact on Economic Development.” CBN Bullion, Volume 26, #1, 1-11.

Sanusi, J.O. (2002b). “Central bank and the Macroeconomic Environment in Nigeria.” Lecture delivered at National Institute for Policy and Strategic Studies, August.

Sawyer, M. (2006). “Inflation Targeting and Central Bank Independence: We are All Keynesians Now! Or Are We?” Journal of Post Keynesian Economics, 28 (4), 639-652.

Sturm, J.E. and Haan, J. de. (2001). “Inflation in Developing Countries: Does Central Bank Independence Matter? New Evidence Based on a New Data Set.” CESifo Working Paper No. CESifo GmbH.