EH.Net Abstracts in Economic History

                ABSTRACTS IN ECONOMIC HISTORY
                     (c) 2004 EH.Net
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Name: Eric Dehay
Email: eric.dehay at u-paris10.fr
Institution: University of Paris X

Co-author: Nathalie Levy
University of Paris X
MODEM CNRS
200 Avenue de la Republique
92001 NANTERRE cedex
FRANCE
nathalie.levy at u-paris10.fr

Title: Central Bank Independence During the Interwar Years: Some Empirical Evidence

Internet Address of abstracted work: not available 

By mail:
University of Paris X
Maison Max Weber
200 Avenue de la Republique
92001 NANTERRE cedex - FRANCE

Language:

Abstract:
The article recalls the central banks independence experience during the
interwar period. As in Cukierman, Webb and Neyapti (1992), we built a legal
index and measured the governors turnover rate for thirty-two central
banks. We then tested the relation between these two indexes and the
inflation or growth performances. As in the studies covering more recent
period, a significant inverse relation between legal independence and
inflation level appears for the whole period. But an inverse relation
between legal independence and growth is also observed for the sub-period
1929 - 38. We then run a second set of regressions that include control
variables and show that theses results seem to be robust. They challenge
the usual view of independence as a "free lunch."

Bibliography: Dehay, Eric and Nathalie Levy. "Central Bank Independence During the Interwar Years: Some Empirical Evidence." University of Paris X, Working Paper, 2004. 

Subject: H
Geographical Area: 0
Country/Region:
Time Period: 8

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