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The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa Kyalisiima Prisca & Yang Jun

The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa

Author (s)

Kyalisiima Prisca & Yang Jun

Abstract

This study seeks to examine the impact of central bank independence and transparency on inflation in sub-Saharan Africa (SSA). The role of central banks is to maintain price stability in the economy. Many scholars have independent and transparent writings due to the image of the Central Banks. On the other hand, other scholars have made clear the negative effects of high inflation as the main macroeconomic indicator used in this paper. In practice, some current studies have concluded that central bank independence and transparency lead to macroeconomic performance (low inflation). Empirical use of regression and analysis is performed for 15 sub-Saharan African countries with data for the period 1998–14 using panel fixed effects model. This paper contributes to research by exploring more than central bank independence as used by many scholars, and adds to literature about Central Bank Independence in Sub Saharan Africa. The results of this research study show that central bank independence and transparency (participant term; CBI_Transp) are statistically significant at 95%, so central bank independence and transparency go hand in hand; reducing inflation in sub-Saharan Africa. From the regression output, we conclude that the interactive variable and the single variables have positive coefficients, which is contrary to the main neoclassical theory used in this paper.

 Keywords: Central Bank Independence, Transparency, Inflation, Sub-Saharan Africa.

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Title: The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa
Author: Kyalisiima Prisca & Yang Jun
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4235704
Media: Online
Volume: 4
Issue: 12
Acceptance Date: 01/11/2020
Date of Publication: 03/11/2020
PDF URL: https://ijsab.com/wp-content/uploads/623.pdf
Free download: Available
Page: 38-52
First Page: 38
Last Page: 52
Paper Type: Research article
Current Status: Published

 

Cite This Article:

Kyalisiima Prisca & Yang Jun (2020). The impact of Central Bank Independence and Transparency on Inflation in Sub-Saharan Africa. International Journal of Science and Business, 4(12), 38-52. doi: https://doi.org/10.5281/zenodo.4235704

Retrieved from https://ijsab.com/wp-content/uploads/623.pdf

 

About Author (s)

Kyalisiima Prisca (corresponding author), Ph.D Candidate, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China. Lecturer in the Department of Banking and Finance, Mountains of the Moon University, Fort Portal, Uganda.

Prof. Yang Jun, PhD., School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China.

 

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DOI: https://doi.org/10.5281/zenodo.4235704