TY - JOUR
T1 - Economic and Socio-Political Determinants of de Facto Monetary Institutions and Inflationary Outcomes
AU - Carmignani, Fabrizio
AU - Colombo, Emilio
AU - Tirelli, Patrizio
PY - 2008
Y1 - 2008
N2 - In this paper we estimate a model where inflation, a measure of de facto central bank independence and an index of de facto exchange rate regime are simultaneously determined by a set of economic, political and institutional variables. De facto central bank independence is hampered by socio-political turbulence and benefits from the balance of powers between the executive and the parliament. Inflation is explained by de facto central bank independence, by the level and volatility of public expenditure and by the de facto exchange rate regime. Openness (real and financial) affects inflation through the exchange rate regime channel. Success in controlling inflation, in turn is crucial to sustain central bank independence and exchange rate stability.
AB - In this paper we estimate a model where inflation, a measure of de facto central bank independence and an index of de facto exchange rate regime are simultaneously determined by a set of economic, political and institutional variables. De facto central bank independence is hampered by socio-political turbulence and benefits from the balance of powers between the executive and the parliament. Inflation is explained by de facto central bank independence, by the level and volatility of public expenditure and by the de facto exchange rate regime. Openness (real and financial) affects inflation through the exchange rate regime channel. Success in controlling inflation, in turn is crucial to sustain central bank independence and exchange rate stability.
KW - central bank independence
KW - exchange rate
KW - inflation
KW - central bank independence
KW - exchange rate
KW - inflation
UR - https://publicatt.unicatt.it/handle/10807/100228
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=57249084030&origin=inward
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=57249084030&origin=inward
U2 - 10.2202/1935-1690.1591
DO - 10.2202/1935-1690.1591
M3 - Article
SN - 1935-1690
VL - 8
SP - 1
EP - 18
JO - THE B.E. JOURNAL OF MACROECONOMICS
JF - THE B.E. JOURNAL OF MACROECONOMICS
IS - 1
ER -