A low inflation rate is therefore more likely to be found in countries with independent central banks than in countries where the central bank is subject to government control. Secondly, they showed that there is a negative correlation between central bank independence and the long-term budget deficit expressed as a percentage of a country’s gross national product.
Countries with independent central banks tend to have smaller budget deficits than those with government-controlled central banks. Thirdly, the studies in general did not find any evidence of a correlation between the independent status of a central bank and production growth.