ABSTRACT
In the 1990s numerous countries provided their central banks with greater legal independence from government. This trend towards increased central bank independence is not only apparent in highly industrialised countries, but also in the transition countries of Central and Eastern Europe (CEE) and in many other emerging economies, particularly in Latin America. Cukierman (1996) lists twenty-five countries in various parts of the world which strengthened the independence of their central banks between 1989 and the beginning of 1996. Already this list is incomplete and changes in the statutes of many other central banks, increasing their independence, have taken place since 1996. For example, in summer 1997 the Bank of England became instrument-independent, though not goal independent since the government has set a direct inflation target.
