Are there any empirical studies on the question of whether independent central banks cause price stability?
I am seeking to understand if independence (of the central monitory authority) is part of the market function that determines price stability at all, and if there are any studies conducted in this area.
The case I have seen arguing for independence leading to price control from here, in an article titled
Nobel-Winning Economist Kydland Backs RBI's Anti-Inflation Policy
In his speech, Mr Kydland observed that independence of the central bank is key to achieving the broader goals of policymaking, and interference by the executive is not desirable.
The case against (probably) from here
The 1995 Reserve Bank of Zimbabwe Act legislated a greater degree of autonomy for the central bank. After 1995 the bank had its own budget and could decide on its own finances. The act also established the control of inflation as the unique objective of monetary policy,
Clearly, increased CBI (Central Bank Independence) did little to restrain Zimbabwe’s subsequent monetary policy.