A Refinement of the Relationship Between Central Bank Independence, Inflation, and Income Inequality in Developing Countries

Abstract

This paper analyzes the impact on income inequality of a set of variables usually considered in the growth literature as potential growth determinants. There is evidence to suggest that unemployment and inflation are positively associated with income inequality; except for countries with central bank independence where a negative association exists between inflation and income inequality. The empirical evidence shows that income inequality increases when unemployment increases.

Description

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Keywords

Central Bank Independence, Developing Countries, Fixed Effects, Income Inequality

Citation

Fawaz, F., & Rahnamamoghadam, M.. 2024. A Refinement of the Relationship Between Central Bank Independence, Inflation, and Income Inequality in Developing Countries. Journal of Central Banking Theory and Practice, 13(1). https://doi.org/10.2478/jcbtp-2024-0006

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