Determinants of Central Bank Independence and Governance: Problems and Policy Implications

Journal of Administration and Governance, Vol. 1, pp. 47-67, 2006

21 Pages Posted: 18 May 2009

See all articles by Amirul Ahsan

Amirul Ahsan

Deakin University- Department of Finance

Michael T. Skully

Monash University - Department of Banking and Finance; Financial Research Network (FIRN)

J. Wickramanayake

Monash University - Department of Accounting; Financial Research Network (FIRN)

Date Written: December 2006

Abstract

Central bank independence and governance (CBIG) is a term subject to conflicting definitions and so its related studies are difficult to compare. This paper therefore focuses on developing of a more useable definition, and an index model identifying the determinants of independence and governance and their possible policy implications. It also examines various independence measurement tools such as ranking and index. The index model resulting centres on key central bank independence and corporate governance issues, such as, legal aspects, political aspects, price stability objective aspects, exchange rate policy aspects, monetary policy and deficit financing aspects and finally, transparency and accountability aspects.

Keywords: Central bank independence, governance, legal independence, election

Suggested Citation

Ahsan, Amirul and Skully, Michael T. and Wickramanayake, Jayasinghe, Determinants of Central Bank Independence and Governance: Problems and Policy Implications (December 2006). Journal of Administration and Governance, Vol. 1, pp. 47-67, 2006, Available at SSRN: https://ssrn.com/abstract=1402662

Amirul Ahsan (Contact Author)

Deakin University- Department of Finance ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia
+613 9244 6571 (Phone)

HOME PAGE: http://www.deakin.edu.au

Michael T. Skully

Monash University - Department of Banking and Finance ( email )

900 Dandenong Road
Caulfield East, Victoria 3145
Australia
+61 3 9903 2407 (Phone)
+61 3 9903 1443 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Jayasinghe Wickramanayake

Monash University - Department of Accounting ( email )

Building 11E
Clayton, Victoria 3800
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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