How does central bank independence influence the relationship between inflation, income inequality and poverty?

IF 3.3 2区经济学 Q2 BUSINESS, FINANCE

Journal of International Money and Finance Pub Date : 2025-09-04 DOI:10.1016/j.jimonfin.2025.103423

Bruno Pires Tiberto

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Abstract

This study employs panel data analysis for 46 countries from 1980 to 2022 to investigate the impact of inflation on income inequality and poverty, highlighting the mitigating role of central bank independence. Using a comprehensive index of de jure central bank independence, the study assesses its influence on five measures of income inequality, four measures of poverty, and income deciles. The findings suggest structural factors are the main drivers of income inequality and poverty, rather than central bank independence. However, while inflation worsens these issues, central bank independence can counteract the adverse effects of inflation. Moreover, the evidence indicates greater central bank independence disproportionately benefits low-income households at the expense of high-income households, with these redistributive effects being more pronounced at higher levels of independence. In conclusion, central bank independence is pivotal in alleviating the negative impacts of inflationary shocks on income inequality and poverty, thereby promoting social and economic justice.

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央行独立性如何影响通货膨胀、收入不平等和贫困之间的关系？

本研究采用1980年至2022年46个国家的面板数据分析，考察通货膨胀对收入不平等和贫困的影响，突出了央行独立性的缓解作用。该研究利用法定央行独立性的综合指数，评估了央行对五项收入不平等指标、四项贫困指标和收入十分位数的影响。研究结果表明，结构性因素是收入不平等和贫困的主要驱动因素，而不是央行的独立性。然而，尽管通货膨胀加剧了这些问题，但央行的独立性可以抵消通货膨胀的不利影响。此外，有证据表明，央行独立性越高，低收入家庭受益越大，而高收入家庭则越少，这种再分配效应在独立性越高时更为明显。总之，中央银行的独立性对于减轻通货膨胀冲击对收入不平等和贫困的负面影响，从而促进社会和经济公正至关重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Money and Finance BUSINESS, FINANCE-

CiteScore

4.20

自引率

4.00%

发文量

141

期刊介绍： Since its launch in 1982, Journal of International Money and Finance has built up a solid reputation as a high quality scholarly journal devoted to theoretical and empirical research in the fields of international monetary economics, international finance, and the rapidly developing overlap area between the two. Researchers in these areas, and financial market professionals too, pay attention to the articles that the journal publishes. Authors published in the journal are in the forefront of scholarly research on exchange rate behaviour, foreign exchange options, international capital markets, international monetary and fiscal policy, international transmission and related questions.