Precommitment by central bank independence
AbstractThe paper addresses the issue of central bank independence. The central argument is that government can precommit to the objective of price stability by providing a constitutional status of independence to the central bank. A sufficient set of institutional elements and the problem of incentive compatibility are discussed. It is argued that the solution is superior to a constitutional money rule as no rule can take adequately into account trend changes in output or velocity. Copyright Kluwer Academic Publishers 1991
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 2 (1991)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100323
central bank; precommitment; rules; price stability; EMU;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nordhaus, William D, 1975. "The Political Business Cycle," Review of Economic Studies, Wiley Blackwell, vol. 42(2), pages 169-90, April.
- David M Kreps & Robert Wilson, 2003.
Levine's Working Paper Archive
618897000000000813, David K. Levine.
- Waller, Christopher J., 1992. "A bargaining model of partisan appointments to the central bank," Journal of Monetary Economics, Elsevier, vol. 29(3), pages 411-428, June.
- Tabellini, Guido, 1988.
"Centralized Wage Setting and Monetary Policy in a Reputational Equilibrium,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 20(1), pages 102-18, February.
- Guido Tabellini, 1985. "Centralized Wage Setting and Monetary Policy in a Reputational Equilibrium," UCLA Economics Working Papers 369, UCLA Department of Economics.
- D. Backus & J. Driffil, 1998.
"Inflation and Reputation,"
Levine's Working Paper Archive
625, David K. Levine.
- Waller, Christopher J, 1989. "Monetary Policy Games and Central Bank Politics," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(4), pages 422-31, November.
- Robert J. Barro, 1986.
"Reputation in a Model of Monetary Policy with Incomplete Information,"
NBER Working Papers
1794, National Bureau of Economic Research, Inc.
- Barro, Robert J., 1986. "Reputation in a model of monetary policy with incomplete information," Journal of Monetary Economics, Elsevier, vol. 17(1), pages 3-20, January.
- Michelle R. Garfinkel, 1989. "What is an "acceptable" rate of inflation?--a review of the issues," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 3-15.
- Rogoff, Kenneth, 1985. "The Optimal Degree of Commitment to an Intermediate Monetary Target," The Quarterly Journal of Economics, MIT Press, vol. 100(4), pages 1169-89, November.
- Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June.
- Bennett T. McCallum, 1987. "The case for rules in the conduct of monetary policy: a concrete example," Economic Review, Federal Reserve Bank of Richmond, issue Sep, pages 10-18.
- Rogoff, Kenneth, 1987.
"Reputational constraints on monetary policy,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 26(1), pages 141-181, January.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.