The impact of central bank independence on the country's macroeconomic factors

Abstract

Object: The article presents and reveals the peculiarities of the impact of the central bank's independence on the country's macroeconomic factors. Based on the research and review of scientific literature on this topic, it will provide an understanding of current problems in this area and help to understand the significance of the independence of the central banking system for the economies of countries.

Methods: The work uses content analysis of modern sources, comparative and logical analyses, generalization, statistical analysis of the dynamics of indicators.

Findings: based on analysis and assessment of the level of independence of central banks of countries of near and far abroad. The authors of the article revealed the degree of influence between such economic concepts as the independence of the central bank and major macroeconomic indicators such as real GDP growth and inflation.

Conclusions: As a result of the study, it was proved that there is a weak causal relationship between the central bank's independence index and major macroeconomic indicators, such as the rate of inflation and GDP in economically developed countries, included in eighteen member countries of the Organization for Economic Cooperation and Development, and five EEA member countries.