02063cas a2200253 a 4500 AALejournalIMF005215 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870343 1018-5941 BD-DhAAL BD-DhAAL Stella, Peter. Central Bank Financial Strength and Policy Performance : An Econometric Evaluation / Peter Stella, Ulrich Klueh. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (45 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The financial health of central banks and its relation to policy outcomes has recently been recognized as an important policy issue. While case study evidence clearly indicates that weak central bank finances can hamper effective policy implementation, the question of whether central bank financial strength influences policy performance remains controversial. This is due, in part, to a lack of econometric evidence. The paper presents a first step toward filling this gap, by providing a quantitative evaluation of the relationship between measures of central bank financial strength and policy performance, in particular inflation. The paper's major finding is that there indeed is a negative relationship between central bank financial strength and inflation outcomes. This relationship appears to be robust to the choice of alternative country samples, control variables, estimation strategies, and conceptualizations of central bank financial strength. Mode of access: Internet Klueh, Ulrich. IMF Working Papers; Working Paper ; No. 2008/176 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/176/001.2008.issue-176-en.xml IMF e-Library