the purpose of present paper was to examine the relationship between central bank independence and inflation rate in iran over 1960-2008. first, central bank independence has been accomplished through three indices including legal and real cbi indices and turnover rate of central bank governor index. then, augmented dickey-fuller test for model stationary of variables has been done by applying ...

The purpose of present paper was to examine the relationship between central bank independence and inflation rate in Iran over 1960-2008. First, central bank independence has been accomplished through three indices including legal and real CBI indices and turnover rate of central bank governor index. Then, Augmented Dickey-Fuller test for model stationary of variables has been done by applying ...

the main purpose of this research has been to investigate whether inflation targeting improves macroeconomic performance as measured by the behavior of inflation, economic output and their variability among the countries employing inflation targeting. in this regard we have looked for empirical evidence in a world sample of 21 developed and developing inflation targeting countries before and af...

----------------------------------------------------------------------------------------------------------------------------Using over 100 years of U.S. data, we find that the long-run effects of inflation on consumption, investment, and output are positive. Thus, models generating long-term negative effects of inflation on output and consumption (including endogenous growth and RBC models with...

The EU acceding countries are supposed to adopt the Euro as soon as economic convergence is achieved. This paper offers a methodology to quantify the economic consequences of an acceding country’s EMU entrance. A small macroeconomic two-country model is specified and combined with two different monetary policy regimes: (i) national monetary policy, (ii) monetary union. The performance of the tw...

Rogoff, 1985, suggested that central bank independence would lead to lower inflation but greater output variability. Alesina and Gatti, 1995, demonstrated Rogoff’s work was partial by only considering economic sources of output variability. By including political factors, circumstances could be identified when making a central bank independent could reduce both inflation and output variability....

Abstract This study investigates the empirical validity of the variability hypothesis in Turkey for the period of February 2005-November 2015, by using cross-sectional relative price data and by focusing on the assumptions of linearity and stability. The linearity assumption between the two variables is ensured by estimating quadratic regression equation. The assumption of stability is secur...

This paper assesses the effect of expected inflation and inflation risk on interest rates within the Fisher hypothesis framework. Autoregressive Conditional Heteroscedastic models are used to estimate the conditional variability of inflation as a proxy for risk. With the UK quarterly data from 1958:4 to 1994:4, we found that both the expected inflation and the conditional variability of inflati...

A growing number of countries have anchored their monetary policy to an explicit numerical rate or range of inflation since such an inflation targeting framework was first adopted by New Zealand in 1989. This paper empirically investigates issues associated with inflation targeting using a dataset of 66 countries for the 1980–2000 period. The paper focuses on two issues. First, which factors ar...

Relative price variability leads to inefficiencies in the allocation of resources that reduce real income (Fischer, 1981). Given the costs associated with relative price variability, the relation between inflation and relative price variability has been extensively researched and a positive relation between the two is documented for many countries and for varying time periods. Investigating the...