Efeitos da independência do banco central e da taxa de rotatividade sobre a inflação brasileira The effects of central bank independence and the rate of turnover on the Brazilian inflation

• Main Author: Helder Ferreira de Mendonça
• Format: Article
• Language: English
• Published: Editora 34 2006-12-01
• Series: Brazilian Journal of Political Economy
• Subjects: central bank independence; inflation; turnover of central bank governors
• Online Access: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572006000400005

<abstract language="eng">Nowadays, the belief is strong in the Brazilian federal government that operational central bank independence is a basic condition to assure price stability. The literature concerning this subject highlights that a high degree of independence and a low turnover of central bank governor are associated with low inflation. This paper analyzes the relation between central bank independence and inflation in Brazil during 1980-2002. The findings denote that there is no effect on inflation due to an increase in degree of independence and a fall in turnover rate.