The paper is organized as follows. Section 2 provides a literature review related to central banks’ financial issues and their impact on policy performance. Section 3 defines the data to be used in the empirical analysis, describes the recent evolution of central banks’ financial strength ratios, and provides a simple correlation analysis of these ratios with inflation. It is followed in Section 4 by regression estimation outcomes using several econometric techniques and in Section 5 by some (further) robustness checks focusing mainly on the (non-)linearity of the relationship analysed. Finally, Section 6 summarizes and concludes
