September 1, 2024Journal of Central Banking Theory and PracticeOpen Access

Does an Independent Central Bank Smooth Exchange Rate Volatility? Evidence from Time-Varying Panel Causality Analysis

View Full Paper

Ask AI

Bookmark

Authors

DYDurmuş Çağrı YıldırımTekirdağ Namık Kemal University ÖEÖmer EsenTekirdağ Namık Kemal University UÇUğur ÇınarTekirdağ Namık Kemal University

Discussion

Member takes

Implication

Time-varying panel causality analysis reveals central bank independence reduces exchange rate volatility in emerging economies, suggesting crisis interventions weaken long-term stability.

Key Points

Independent central banks significantly enhance macroeconomic stability, which effectively mitigates exchange rate volatility across emerging market economies.
Time-varying panel causality analysis across seven emerging nations from 1998 to 2017 demonstrates how independent monetary governance curbs market volatility.
Crisis-driven interventions targeting short-term problems undermine central bank independence, which ultimately eliminates long-term macroeconomic stability.

Cite This Study

Yıldırım et al. (2024) studied this question.

synapsesocial.com/papers/68e59d88b6db643587538151 https://doi.org/10.2478/jcbtp-2024-0028

View Full Paper

Ask AI

Bookmark

Implication

Time-varying panel causality analysis reveals central bank independence reduces exchange rate volatility in emerging economies, suggesting crisis interventions weaken long-term stability.

Does an Independent Central Bank Smooth Exchange Rate Volatility? Evidence from Time-Varying Panel Causality Analysis

Discussion

Member takes

Implication

Key Points

Cite This Study

Does an Independent Central Bank Smooth Exchange Rate Volatility? Evidence from Time-Varying Panel Causality Analysis

Discussion

Member takes

Implication

Key Points

Cite This Study

Also Consider

Also Consider