Work

To What Extent Does Central Bank Independence Alleviate Poverty in Developing Countries?

Year: 2024

Type: article

Abstract: This paper investigates the nexus between poverty and central bank independence in developing countries. The study examines data from up to 35 developing countries from 2000 to 2018. Using the GMM dynamic panel data method, the study finds that de jure central bank independence is more robust than de facto in reducing inflation. However, the effect of de facto central bank independence is significant in reducing poverty, while de jure central bank independence is not. The paper concludes that central bank independence may play a role in managing inflation in developing countries with high inflation and could relatively contribute to poverty reduction in these countries.

Source: Journal of Central Banking Theory and Practice

DOI: 10.2478/jcbtp-2024-0026

Author: Ayoub Rabhi

Institution: International University of Rabat

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4402638938