Central Bank Autonomy and Price Stability in Sub-Saharan Africa: Implications for the Bank of Central African States (BEAC)
The purpose of this paper is to validate the link between the autonomy of the Central Bank and inflation. An econometric modeling of the relationship between inflation, the autonomy of the Central Bank and economic performance variables will allow to answer to the problem that the reduction of the inflationary bias passes by the autonomy of the Central Bank. Indeed, by adopting a legal and real measure of autonomy Cukierman et al. (1992) for ten (10) Central Banks in Sub-Saharan Africa over the period 1980-2017, the static panel regression partially confirms the expected relationship. Result which proves that the condition of the autonomy of the Central Bank can only be necessary (and not sufficient) to price stability.
