Study On Central Bank Independence Of Emerging Markets Based On Inflation Targeting

Emerging Markets generally carry out the reform of central bank before or after implementing the inflation targeting, setting independence as the keynote, and successfully keep the inflation at a low level. Then, whether inflation targeting is favor to the increase of central bank independence and the perfect of central bank system, whether central bank independence is correlated with the inflation and is able to promote the realization of inflation target, and what enlightenment our country can obtain in the aspect of the increase of central bank independence become the issues which need studying.The dissertation expatiates the connotation and connection of inflation targeting and central bank independence and the index systems for detecting central bank independence. On the basis of the above, the dissertation takes 10 emerging markets which have implemented inflation targeting as examples, analyzing the reciprocity between the effective implementation of inflation targeting and the improvement of central bank independence and discussing the experence and enlightenment our country can obtain.The dissertation makes use of GMT index system and CWN index system to establish reasonalbe and objective comprehensive index system, measuring the central bank independence of emerging markets before and after implementing inflation targeting, and adopts regression analysis to detect the pertinence between the level of central bank independence and implementation of inflation targeting. The results are as follows, first, the central bank independence of emerging markets improves greatly after the implementation of inflation targeting, but the development of different aspects of it is not balanced; secondly, the higher the central bank independence is, the better to lower the inflation and realize the policy target; finally, the detected result of the central bank independence of the People's Bank of China by using the same index systme shows that the central bank independence of our country is lower than the average level of emerging markets. Such aspects as the appointment and removement of officers, the proportion of the council members, the decision right of monetary policy and information disclosure system need to be improved in order to ensure the ultimate realization of policy target.