THE INDEPENDENTNESS OF CENTRAL BANKS

In many countries, central banks are made more independent and the aim s of monetary policy is narrowed to the fight against inflation. There seems to be solid reasons for eliminating the inflationary bias in ce ntral bank behaviour but it is argued that independentness is an illus ive concept. The most popular measure - the Alesina-Summers index - is discussed and compared with a Monetary condition index. It appears to be the case that deeds, and not words are what matters.