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An argument in favor of long terms for central bankers

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  • Hahn, Volker

Abstract

Drawing on the canonical New Keynesian model, we assess the impact of central bankers’ term duration on governments’ appointment choices. We show that longer terms induce the government to appoint more conservative central bankers, which is socially desirable.

Suggested Citation

  • Hahn, Volker, 2014. "An argument in favor of long terms for central bankers," Economics Letters, Elsevier, vol. 122(2), pages 132-135.
  • Handle: RePEc:eee:ecolet:v:122:y:2014:i:2:p:132-135
    DOI: 10.1016/j.econlet.2013.11.010
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    References listed on IDEAS

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    Cited by:

    1. Etienne Farvaque & Norimichi Matsueda, 2017. "Optimal Term Length For An Overconfident Central Banker," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(01), pages 179-192, March.
    2. Hahn, Volker, 2016. "Designing monetary policy committees," Journal of Economic Dynamics and Control, Elsevier, vol. 65(C), pages 47-67.

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    More about this item

    Keywords

    Term length; Conservative central banker; New Keynesian model;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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