Abstract
Before the Global Financial Crisis (GFC) central bank independence was a popular topic among those who favoured price stability. A conservative central banker, without being influenced by the economic policies of the government, can maintain as its primary priority the maintenance of price stability. The response of central bankers to the GFC seems to indicate a very different approach to macroeconomic targeting. In this paper we present empirical results using the Engel Granger cointegration technique for five countries and the results show that persistent cointegration of series from 2000 until 2006-2007 did not continue in the latter part of the sample period. These results are indicative of significant changes in central bank behaviour.
Original language | English |
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Pages (from-to) | 55-61 |
Number of pages | 7 |
Journal | Economics |
Volume | 2 |
Issue number | 5 |
DOIs | |
Publication status | Published - 2013 |