Central bank financial strength has not been a significant issue for a substantial period of time. However, recent theoretical and empirical literature argues that even central banks require sufficient level of financial strength to perform functions effectively and achieve their objectives. In...

This study examines the relationship between inflation and CBIG in Asia Pacific. It applies an unique CBIG index model to rank central banks and establishes a significant relationship between CBIG (both overall and with sub-indices) and inflation in a pooled regression model. It also finds that...