MEASURING CENTRAL BANK INDEPENDENCE IN MALAWI: THE NEW INDEX OF INSTITUTIONAL QUALITY APPROACH
| Dublin Core | PKP Metadata Items | Metadata for this Document | |
| 1. | Title | Title of document | MEASURING CENTRAL BANK INDEPENDENCE IN MALAWI: THE NEW INDEX OF INSTITUTIONAL QUALITY APPROACH |
| 2. | Creator | Author's name, affiliation, country | Frank Kamanga; Master’s Degree in Economics Student at Marmara University, Turkey |
| 2. | Creator | Author's name, affiliation, country | Mtendere Chikonda; Senior Economist at The Central Bank of Malawi |
| 3. | Subject | Discipline(s) | |
| 3. | Subject | Keyword(s) | index of institutional quality methodology, central bank, Reserve Bank of Malawi, central bank independence, inflation |
| 4. | Description | Abstract | This study applied the Index of Institutional Quality (IQ) methodology to measure the level of independence of the Reserve Bank of Malawi (central bank) and examine its impact on inflation. The IQ methodology assesses independence of central banks based on their actual practices. The methodology is suitable for developing countries whose practices do not fully conform to the laws of Banks that are in place. The study finds that the average independence index of the Reserve Bank of Malawi (RBM) is 15.1, which is more than half below the total index value of 36. This clearly shows that the RBM is not convincingly independent. Although the results show an above-average value for index of monetary policy independence, indications are that the RBM is not free from political pressures as evidenced by below-average values for indices of political and fiscal independence. Using Ordinary Least Square (OLS), the results further show that the low degree of independence by the RBM has contributed to high inflation in Malawi.
JEL: E01, E42, G38
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| 5. | Publisher | Organizing agency, location | Open Access Publishing Group |
| 6. | Contributor | Sponsor(s) | |
| 7. | Date | (YYYY-MM-DD) | 2017-03-13 |
| 8. | Type | Status & genre | Peer-reviewed Article |
| 8. | Type | Type | |
| 9. | Format | File format | PDF, Academia.edu, Read the Full Article on Calameo |
| 10. | Identifier | Uniform Resource Identifier | https://oapub.org/soc/index.php/EJEFR/article/view/68 |
| 10. | Identifier | Digital Object Identifier (DOI) | http://dx.doi.org/10.46827/ejefr.v0i0.68 |
| 11. | Source | Title; vol., no. (year) | European Journal of Economic and Financial Research; Vol 2, No 1 (2017) |
| 12. | Language | English=en | en |
| 13. | Relation | Supp. Files | |
| 14. | Coverage | Geo-spatial location, chronological period, research sample (gender, age, etc.) | |
| 15. | Rights | Copyright and permissions |
Copyright (c) 2018 Frank Kamanga, Mtendere Chikonda This work is licensed under a Creative Commons Attribution 4.0 International License. The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed. |