Abstract
This policy brief note is based on a study that revisits an old debate about the way the institutional settings that determine the conduct of monetary policy and prudential regulation and supervision of the banking system influence policymakers' actions in pursuing their designated mandates. We assess whether the allocation of policy mandates affects central banks' primary objective of inflation stabilization by employing dynamic heterogeneous panel methods, using data for 25 industrialised countries from 1960 to 2018. Once we appropriately control for relevant policy and institutional factors, we show that the institutional settings of prudential policy and monetary policy do not have a significant effect on inflation outcomes.