Independence and Credibility of the Central Bank in a Situation of Financial Liberalization

Abstract

This study attempts to advance our knowledge of the role, conduct, and standing of a credible, independent central bank in its duty to uphold the general price level's stability. In other words, it involves examining the theoretical and empirical connections between the effectiveness of monetary policy and debt, as well as the connections between independence and the maintenance of price stability in the Congolese economy in a context of financial liberalization. The study's research hypothesis—that the Central Bank of Congo is legally autonomous under the new law 027 of December 18th2018 regarding its structure and operations confirmed after examination. Although the stability of the currency depends on its monetary policy, this policy's implementation does not give rise to its legitimacy. A trustworthy central bank is one that can maintain the general price level, which is its ultimate goal.