THE RELATION BETWEEN CENTRAL BANK INDEPENDENCE AND INFLATION RATE IN EGYPT: AN EMPIRICAL ANALYSIS DURING 1998-2019

This paper examines the relation between granting central banks more independence represented in both its manifested legal charter as well actual practices adopted and inflation Egypt during period from 1998-2019. To do so, this first looks at evolution of different bank (CBI) measures adopts most comprehensive relevant one. Consequently, it runs a regression model adopting an autoregressive distributed lag (ARDL) model, regressing dependent variable on determinants CBI, M2 openness, to capture such short long term time dimensions case Egypt. The further provides interpretation computed outcomes, where presents robust evidence inverse CBI under study form short-run long-run. Keywords: Central independence, Bank Egypt, Inflation, Autoregressive lag, unit root testJEL Classifications: E31, E42, E58, E370DOI: https://doi.org/10.32479/ijefi.10941