Central Bank Independence, Political Regimes, and the Sacrifice Ratio: A Replication Study of Caporale and Caporale (2008)

Hajime Katayama, Natalia Ponomareva, Malvin Sharma

Research output: Contribution to journalArticle


A recent article by Caporale and Caporale (2008, thisJournal) provides an important finding on the determinants of the sacrifice ratio: central bank independence is not a determining factor for the sacrifice ratio when political regimes and other factors are controlled for. Our replication study shows that their result is driven by errors in the data. With correct data, it can be found that central bank independence is positively and significantly correlated with the sacrifice ratio, even when the nature of the political regime is controlled for.

Original languageEnglish
Pages (from-to)1035-1042
Number of pages8
JournalJournal of Money, Credit and Banking
Issue number5
Publication statusPublished - 2011 Aug



  • Central bank independence
  • E31
  • E52
  • F41
  • Openness
  • Political regimes
  • Sacrifice ratio

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

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