Central bank independence and its international dimension
|Author:||Bc. Vojtěch Mišák|
|Year:||2017 - summer|
|Leaders:|| prof. Roman Horváth Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The aim of the bachelor thesis is to investigate central bank independence with
the stress on its international dimension. We use spatial analyses to show the spatial
spillover effect of central bank independence. We give few possible economic
explanations, why central banks influence each other’s independence.
Because our data suffer from spatial correlation in error terms we had to used
GMM estimation of our models. The most important finding of our research is that the
distance is an important factor when describing the international dimension of central
bank independence. Interested reader can look at the estimates of our control variables
(Central bank transparency, Rule of law, Growth of GDP, membership in international
organizations, Openness to trade and Inflation targeting regime) to better understand
what determines the level of Central bank independence.
Probably the most important finding are the estimates of Rule of Law, Growth of
GDP and OECD and WTO membership. Surprisingly, Rule of Law has a negative
impact on the level of central bank independence. On the other hand, countries that are
members of OECD and WTO tend to have more autonomous central banks.
Finally, we have compared our results to existing literature