independence (CBI) on price stability (the level of inflation and inflation volatility), employing a panel dataset that covers up …

In this paper, we use a non-parametric regression method to compare the transition process from high to low inflation … independence reform under a high inflation regime, no evidence is found that the reforms have actually led to price stability. This … suggests that the credibility of a low inflation goal can be achieved without institutional reforms which grant the central …

number of developing countries now have domestic inflation targets administered by independent and transparent central banks … monetary policy in these countries does not have any obvious international cost. Inflation targeters have lower exchange rate … volatility and less frequent quot;sudden stopsquot; of capital flows than similar countries that do not target inflation …