Central Bank Independence, Inflation, and Poverty in Africa

Agyapomaa Gyeke-Dako, Elikplimi Komla Agbloyor, Abel Mawuko Agoba, Festus Turkson, Emmanuel Abbey

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

Abstract

This article discusses the extent to which central bank independence (CBI) can be used to mitigate the regressive nature of inflation. Using 44 Sub-Saharan African (SSA) countries from the period 1970–2012, the article first examines whether CBI has any influence on inflation by distinguishing between legal independence and governor turnover rates. The evidence shows that CBI helps control inflation, and that inflation generally reduces poverty, and this effect is even stronger, in an environment of low CBI. JEL Codes: E02, E58, E31, I32.

Original languageEnglish
Pages (from-to)211-236
Number of pages26
JournalJournal of Emerging Market Finance
Volume21
Issue number2
DOIs
Publication statusPublished - Jun 2022

Keywords

  • Africa
  • Central bank independence
  • inflation
  • poverty

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