FIGURE 15-2

Inflation and Central Bank Independence This scatterplot presents the international experience with central bank independence. The evidence shows that more independent central banks tend to produce lower rates of inflation.

Source: FIGURE 1a, page 155, of Alberto Alesina and Lawrence H. Summers, “Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence,” Journal of Money, Credit, and Banking 25 (May 1993): 151–162. Average inflation is for the period 1955–1988.