Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Ibrahim Akbari
Author-Name-First: Mohammad Ibrahim
Author-Name-Last: Akbari
Author-Email: m.ebrahimakbary@gmail.com
Author-Workplace-Name: PHD in Monetary Economics and Faculty Member of the Faculty of Economics, Bamika Higher Education Institute, Bamyan, Afghanistan
Title: Analyzing the Impact of Central Bank Independence on Its Credibility and Reputation in Afghanistan
Abstract: This study aims to critically analyze the impact of central bank independence on the credibility and reputation of the institution in the Islamic Republic of Afghanistan over the period from 2002 to 2023. In this context, the research seeks to provide a comprehensive and precise examination of various dimensions of central bank institutional independence, such as the reduction of political interference, the enhancement of transparency, and the promotion of the implementation of scientifically grounded and sustainable monetary policies. The research methodology is based on the Autoregressive Distributed Lag (ARDL) model and time-series data analysis. The results indicate that central bank independence has a significant and positive effect on its credibility and reputation. Moreover, exchange rate volatility has a significant negative impact on these variables, while economic growth and inflation control serve as complementary factors that play a crucial role in strengthening the credibility and reputation of the central bank. These findings provide a solid foundation for economic policy formulation aimed at reinforcing the central bank’s standing both domestically and internationally.
Classification-JEL: JEL
Keywords: Central Bank Independence; Institutional Credibility; Economic Stability; Monetary Policy; Exchange Rate Volatility
Journal: International Journal of Resistive Economics
Pages: 109-128
Volume: 13
Issue: 2
Year: 2025
Month: April
DOI: 10.22034/oajre.2025.509253.1106
File-URL: https://www.oajre.ir/article_219884_5d25b7bb60a6c7c9b8429b1816be4b49.pdf
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File-URL: https://www.oajre.ir/article_219884.html
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Handle: RePEc:trd:journl:219884