Abstract:

The importance given to the central banks, with the country’s economies taking into account the globalized and economic needs that are constantly changing, continues to grow from day to day. In this regard, the central bank’s issue of independence keeps its place on the agenda. Economic conditions both keep the issue of independence on the agenda and reveal the need to investigate the relations between the central bank’s independence and economic indicators. In order to explore the relationship that exists between independence and inflation, the study has been studied for the country that applies inflation, growth, public final consumption spending, central bank independence, large cash supply and currency ratio. In the study with annual data from 1972 to 2014, the panel regression method was used. According to the results of the analysis, a negative relationship between the central bank's independence and inflation has been found. It has also achieved significant results regarding public spending and growth variables.

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