02081cas a2200253 a 4500 AALejournalIMF006689 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455205233 1018-5941 BD-DhAAL BD-DhAAL Quintyn, Marc. The Effectiveness of Macroeconomic Commitment in Weak(er) Institutional Environments / Marc Quintyn, Sophia Gollwitzer. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (59 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 This paper analyzes the institutional conditions affecting the establishment and effectiveness of independent central banks and of budgetary institutions. It draws on the recent theory developed by North, Wallis and Weingast on the transition from a closed and fragile state to an open economic and political environment. The paper presents a composite indicator allowing for the identification of a country's position along this transition path. The findings suggest that (i) while the establishment of autonomous central banks seems to be relatively independent from the broader institutional framework, sound budgetary institutions tend to be established in countries with higher levels of rule of law for the elites, and (ii) while central bank independence is effective in reducing inflation irrespective of a country's position along the transition path, budget institutions seem to be most effective as a disciplining device in weak institutional environments. Mode of access: Internet Gollwitzer, Sophia. IMF Working Papers; Working Paper ; No. 2010/193 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/193/001.2010.issue-193-en.xml IMF e-Library