ing from details, these conclusions imply that inflation is lower the higher is CBI and that, given independence, countries that pre-announce monetary policy have even lower rates of inflation. Furthermore, there is no evidence that CBI retards growth or investment. As a matter of fact, for LDCs, the evidence points in the opposite direction. Low independence is associated with lower growth and investment. Some economists feel that excessive independence may interfere with the potential stabilisatory function of monetary policy. Since fluctuations in the growth rate of the economy are found to be unrelated to CBI, this does not appear to be the case. III. COMMITMENT VIA CENTRAL BANK INDEPENDENCE AND