Central Bank Independence and Inflation Control: Alternative Monetary Strategies

Authors

  • Mehdi Monadjemi School of Economics, University of New South Wales, Australia.
  • Kyung H. Yoon Economics and Finance, University of Western Sydney, Australia.
  • John Lodewijks S P Jain School of Global Management, Australia.

DOI:

https://doi.org/10.9734/bpi/mpebm/v5/3749F

Keywords:

Central banking, financial crises, inflation targeting, great recession

Abstract

Before the Global Financial Crisis (GFC) central bank independence was a popular topic among those who favoured price stability.  A conservative central banker, without being influenced by the economic policies of the government, can maintain price stability.  The response of central bankers to the GFC seems to indicate different approach to monetary policy strategy. The empirical results using the Engel Granger cointegration technique for five countries show that persistent cointegration of series from 2000 until 2006-2007 did not continue in the latter part of the sample period. The purpose of this chapter is to examine the significance of changes in central banks’ monetary policy strategy.

Published

2021-08-20

How to Cite

Mehdi Monadjemi, Kyung H. Yoon, & John Lodewijks. (2021). Central Bank Independence and Inflation Control: Alternative Monetary Strategies. Modern Perspectives in Economics, Business and Management Vol. 5, 103–110. https://doi.org/10.9734/bpi/mpebm/v5/3749F

Issue

Modern Perspectives in Economics, Business and Management Vol. 5

Section

Chapters