Central bank independence and output variability
AbstractThe paper is structured as following in section a simple theoretical model is outlined, and it is found that an independent central bank should reduce (or eliminate) the inflation bias, but should increase output variability. in the following section empirical evidence consistent with the ida that countries which have smaller real shocks are more likely to choose an independent central bank is presented. The conclusion offers comments and suggestions fro further research.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 60 (1998)
Issue (Month): 1 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
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