Evidence regarding the Central Bank Autonomy: From the International Consensus to the Brazilian Case

Abstract: This note addresses the importance of central bank autonomy in conducting monetary policy, highlighting its role in economic stability and inflation control. We discuss empirical results related to the benefits of greater central bank autonomy. In this regard, a synthesis of the evolution of knowledge that can be drawn from the related literature is provided, from international cases to the Brazilian context in particular. Although there is still no full consensus on the relative advantages of higher levels of autonomy (and independence) for central banks, the available evidence suggests that the benefits outweigh the potential social costs of this institutional progress. Keywords: Autonomy, Central Bank, Monetary Policy, Inflation, Brazil JEL Classification Number: E50; E58