Credibility and Flexibility with Independent Monetary Policy Committees
AbstractIndependent monetary policy committees are a simple way of attaining relatively low inflation without completely sacrificing an activist role for monetary policy. If central bankers' types are unknown, then for a wide range of parameters an independent committee achieves higher social welfare than either a zero-inflation rule or discretionary policy conducted by an opportunistic central banker. A key reason for the committee's superior performance is that committee members are relatively likely to opt for low inflation and building a reputation when shocks are small. When large shocks hit the economy, the incentive to react outweighs the reputation-building benefit.
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 Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 38 (2006)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Esteban Colla De Robertis & Last: Colla De Robertis, 2010. "Monetary policy committees and the decision to publish voting records," Documentos de InvestigaciÃ³n - Research Papers 1, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
- Alexander Mihailov & Katrin Ullrich, 2008.
"Independence and Accountability of Monetary and Fiscal Policy Committees,"
Economics & Management Discussion Papers
em-dp2008-72, Henley Business School, Reading University.
- Mihailov, Alexander & Ullrich, Katrin, 2007. "Independence and Accountability of Monetary and Fiscal Policy Committees," ZEW Discussion Papers 07-044, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Alexander Jung & Gergely Kiss, 2012. "Voting by monetary policy committees: evidence from the CEE inflation-targeting countries," MNB Working Papers 2012/2, Magyar Nemzeti Bank (the central bank of Hungary).
- Jung, Alexander & Kiss, Gergely, 2012. "Preference heterogeneity in the CEE inflation-targeting countries," European Journal of Political Economy, Elsevier, vol. 28(4), pages 445-460.
- Marcela Eslava, 2007.
"Central Bankers In Government Appointed Committees,"
002051, UNIVERSIDAD DE LOS ANDES-CEDE.
- Eslava, Marcela, 2010. "Central bankers in government appointed committees," Journal of Public Economics, Elsevier, vol. 94(5-6), pages 363-379, June.
- Gerlach-Kristen, Petra, 2008. "Taking two steps at a time: On the optimal pattern of policy interest rates," Journal of Economic Dynamics and Control, Elsevier, vol. 32(2), pages 550-570, February.
- Stephen Hansen & Michael McMahon & Carlos Velasco Rivera, 2013.
"How Expoerts Decide: Preferences or Private Assessments on a Monetary Policy Committee?,"
CESifo Working Paper Series
4201, CESifo Group Munich.
- Stephen Hansen & Carlos Velasco Rivera & Michael McMahon, 2013. "How Experts Decide: Preferences or Private Assessments on a Monetary Policy Committee?," CAMA Working Papers 2013-19, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Keiichi Morimoto, 2009. "Optimal Structure of Monetary Policy Committees," Discussion Papers in Economics and Business 09-36-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Dec 2009.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.