The score for the monetary freedom factor is based on two components: The weighted average inflation rate for the three most recent years, Price controls. The weighted average inflation (WAI) rate for the three most recent years serves as the primary input into an equation that generates the base score for monetary freedom (MF). The extent of price controls is then assessed as a penalty of up to 20 percent subtracted from the base score. The country's monetary freedom ranges between 0 and 100, where 100 represents the maximum degree of monetary freedom.
Type of variable: Continuous
Last updated by source: 2021-01-29