Index of central bank independence
A well-developed theoretical literature suggests that central bank independence causes low inflation. Empirical work supporting this hypothesis is unsatisfactory, however, for two reasons: statistical analysis has only recently begun to include control variables, and important political variables that are related to inflation have not yet been included; analysis has not yet undertaken a of the central bank independence, as it can affect the inflation in the long-run. Cukierman (1992) and Eijffinger and De Haan (1996) believe that central bank independence in the industrialized countries is inversely correlated with the annualized inflation rate. A higher degree of central bank independence reduces Central Bank Independence in the World: A New Data Set. Webb and Neyapty index. Previous datasets focused on developed countries, and included non-representative samples of developing