Revisiting Central Bank Independence in the World: An Extended Dataset

38 Pages Posted: 7 May 2024

See all articles by Ana Carolina Garriga

Ana Carolina Garriga

University of Essex - Department of Government

Date Written: March 28, 2024

Abstract

How has central bank independence (CBI) changed over time and across countries? This paper introduces the most comprehensive dataset on de jure CBI, including country-year observations covering 190 countries between 1970 and 2023. The dataset identifies statutory reforms affecting CBI, their direction, and codes four dimensions of CBI (personnel independence, central bank’s objectives, policy formulation, and limits on lending). It includes two CBI indices and a regional diffusion variable. The broader coverage of this dataset has important implications. First, countries included only in this dataset tend to have lower CBI than those previously coded. Simple analyses show that extended geographic coverage presents a different picture of the evolution and effects of central bank governance and suggests that systematically missing data in other data sources may have effects on inferences. Second, it shows that although there is a global tendency towards more CBI, there is significant variance across and within regions, including numerous reforms reducing CBI in the past two decades. Finally, it suggests changes in the factors associated with CBI since the Global Financial Crisis, which could indicate different motivations informing central banks’ reforms. This data contribution is important for research beyond the study of monetary institutions and their effects.

Keywords: Central bank independence; central banks; data; delegation; Global Financial Crisis; Great Moderation; reforms

JEL Classification: E39, E58, E61, C82,E02

Suggested Citation

Garriga, Ana Carolina, Revisiting Central Bank Independence in the World: An Extended Dataset (March 28, 2024). Available at SSRN: https://ssrn.com/abstract=4816563 or http://dx.doi.org/10.2139/ssrn.4816563

Ana Carolina Garriga (Contact Author)

University of Essex - Department of Government ( email )

Wivenhoe Park
Colchester CO4 3SQ, CO4 3SQ
United Kingdom

HOME PAGE: http://https://www.essex.ac.uk/people/garri79407/carolina-garriga

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