Central Bank Independence in Transition Economies

Central Bank Independence… 

S&A No. 120 

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3.3.1. Political Independence 

In all countries the law on Central Banks was passed recently, usually at the start 

of economic reforms. In most cases it was formulated according to the international 

standards and contain at least the most important provisions for political 

independence. In most of the countries the Governor is appointed for more than five 

years. Usually there is no formal influence of the Government on the Bank policy, 

although none of the statutes provide a legal provision supporting the Bank in case of 

conflict with the Government. The goal of maintaining the price stability is 

enumerated in almost all statutes (with exception of Belarus and Ukraine).  

 

Table 1