DOES HIGHER RATE OF CENTRAL BANK INDEPENDENCE MEAN LOWER INFLATION RATE?

There is a discussion about the degree of central bank independence in professional circles for many years. This discussion comes out from years when central banks were not too independent and did not have too much autonomy in the implementation of monetary policy. At this time number of works was created dealing with the effects of central bank independence on inflation rate. Under current conditions, usually in strict separation of fiscal and monetary policy, conditions have changed fundamentally. This paper is based on assumptions set out in earlier in this paper cited articles. Therefore the aim of this paper is to verify the hypothesis that higher degree of central bank independence means lower inflation rate in the economy in today's conditions.