Home Part 1 STUDY REGARDING ASSESSING THE IMPACT OF CENTRAL BANK GOVERNANCE IN ROMANIA AND CZECH REPUBLIC

 

STUDY REGARDING ASSESSING THE IMPACT OF CENTRAL BANK GOVERNANCE IN ROMANIA AND CZECH REPUBLIC


Associate Professor Florin Cornel Dumiter PhD, Lecturer Pavel Fărcaș PhD
”Vasile Goldiș” Western University of Arad, Faculty of Economics


Abstract
In the late of 1990’s the central bank independence concept has emerged in the economic literature. Beyond the Great Inflation of the 1960’s and 1980’s, an independent central bank in compliance with the free lunch hypothesis has become lately the panacea of modern monetary policy. Moreover, central bank transparency and central bank accountability and responsibility had become the surgery tools for tracking a good record of central bank governance around the world. In this article, we provide a qualitative and quantitative overview regarding modeling central bank governance and inflation having at background the historical evolution of the main macroeconomic indicators in two Central and Eastern European Countries: Romania and Czech Republic. These two countries register several common elements regarding central banking and monetary policy, but register also some distinguished particularities regarding the economical, political and social aspects starting from 1990’s and until present.
Keywords: inflation targeting, central bank independence, multiple regression, panel data.

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