The anti inflationary influence of corporatist structures and central bank independence: The importance of the hump shaped hypothesis

Fahim Al-Marhubi, Thomas D. Willett

Research output: Contribution to journalArticle

19 Citations (Scopus)


Many studies have found strong negative correlations between central bank independence and inflation, but the casual significance of this relationship is often challenged. We find that the negative relationship remains even when a number of other explanatory variables are considered. Special attention is given to the role of corporatism. Following Calmfors and Driffell it is argued that both high and low levels of centralization should be associated with lower inflation. We present empirical support for his hump shaped hypothesis, and find that the inclusion of corporatism does not diminish the significance of central bank independence.

Original languageEnglish
Pages (from-to)153-162
Number of pages10
JournalPublic Choice
Issue number1-2
Publication statusPublished - Jul 1995


ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics

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