Ismihan, MOzkan, FGDepartment of Business2024-07-052024-07-052004180165-17651873-737410.1016/j.econlet.2003.12.0222-s2.0-3342909619https://doi.org/10.1016/j.econlet.2003.12.022https://hdl.handle.net/20.500.14411/1082This paper provides a potential explanation for the recent findings of no significant relationship between central bank independence (CBI) and lower inflation. We argue that although CBI delivers lower inflation in the short-term, it may reduce the scope for productivity enhancing public investment and so harm future growth potential. We also argue that the effects on growth make CBI less likely to achieve lower inflation in the long-term. (C) 2004 Elsevier B.V. All rights reserved.eninfo:eu-repo/semantics/closedAccesscentral bank independencepublic investmentinflationArticleQ3843305309WOS:000222962400002