There is wide spread agreement that Central Banks should be made independent. The backing for such an institutional structure is given by strong theoretical underpinnings together with unprecedented empirical evidence. This paper looks at this topic in the context of a small economy. In December 2004, the Central Bank of Seychelles became an autonomous body through the approval of a new Central Bank law. Given that the Bank is in its infancy as an independent institution, this paper looks at the implications that this change will entail, especially in the short-term. The analysis looks...