Does an Independent Central Bank Smooth Exchange Rate Volatility? Evidence from Time-Varying Panel Causality Analysis

Küçük Resim Yok

Tarih

2024

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Sciendo

Erişim Hakkı

info:eu-repo/semantics/openAccess

Özet

This paper empirically examines the effect of the central banks independence on exchange rate volatility by using a large data-set for the E7 (7 emerging countries) covering the period 1998-2017. This paper applies the time-varying panel causality analysis to obtain country-based results. The results show that the policy design, with relatively independent central banks, provides supportive results for macroeconomic stability. It is concluded that policies focusing on current problems by ignoring macroeconomic stability, such as the 2008 crisis, have eliminated the relationship between bank independence and stability.

Açıklama

Anahtar Kelimeler

Time-varying panel causality analysis, E7 countries, Central Bank, Monetary Policy Strategy, C33, E58, F31

Kaynak

Journal of Central Banking Theory and Practice

WoS Q Değeri

N/A

Scopus Q Değeri

Cilt

13

Sayı

2

Künye