IDEAS home Printed from https://ideas.repec.org/a/bla/scandj/v102y2000i4p621-643.html
   My bibliography  Save this article

Who Wants an Independent Central Bank? Monetary Policy‐making and Politics

Author

Listed:
  • F. Gulcin Ozkan

Abstract

The costs and benefits of cooperative monetary and fiscal policy are analysed in the framework of a partisan business‐cycles model. It is shown that political parties with different ideologies prefer to choose different arrangements for macroeconomic policy‐making. More specifically, right‐wing parties favour independent central banks more than left‐wing parties. An independent central bank is also the generally preferred option from a social welfare point of view. In addition, the form of policy‐making arrangements between the fiscal and monetary authorities is shown to influence the extent of partisan cycles. JEL classification: E32; E58; E63; C72

Suggested Citation

  • F. Gulcin Ozkan, 2000. "Who Wants an Independent Central Bank? Monetary Policy‐making and Politics," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(4), pages 621-643, December.
    • Handle: RePEc:bla:scandj:v:102:y:2000:i:4:p:621-643
    DOI: 10.1111/1467-9442.00218
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9442.00218
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9442.00218?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Abdul Munim Joarder & A. K. M. Nurul Hossain & Monir Uddin Ahmed, 2016. "Does the central bank contribute to the political monetary cycles in Bangladesh?," Economic Change and Restructuring, Springer, vol. 49(4), pages 365-394, November.
    2. Fracasso, Andrea & Ozkan, F. Gulcin, 2004. "Fiscal policy, labor market structure and macroeconomic performance," Economics Letters, Elsevier, vol. 83(2), pages 205-210, May.
    3. Moïse Sidiropoulos & Blandine Zimmer, 2009. "Monetary Union Enlargement, Fiscal Policy, and Strategic Wage Setting," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 631-649, August.
    4. Michael Bleaney & F. Gulcin Ozkan, 2008. "Foreign Debt and Fear of Floating: A Theoretical Exploration," Discussion Papers 08/03, University of Nottingham, School of Economics.
    5. Michael Bleaney & F. Gulcin Ozkan, 2011. "The structure of public debt and the choice of exchange rate regime," Canadian Journal of Economics, Canadian Economics Association, vol. 44(1), pages 325-339, February.
    6. Ozkan, F Gulcin & Ismihan, Mustafa, 2007. "Public investment: a remedy or a curse? Examining the Role of Public Investment for Macroeconomic Performance," CEPR Discussion Papers 6139, C.E.P.R. Discussion Papers.
    7. F. Gulcin Ozkan & Ahmet Kipici & Mustafa Ismihan, 2010. "The Banking Sector, Government Bonds, and Financial Intermediation: The Case of Emerging Market Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(4), pages 55-70, January.
    8. Beetsma, Roel M.W.J. & Lans Bovenberg, A., 2006. "Political shocks and public debt: The case for a conservative central bank revisited," Journal of Economic Dynamics and Control, Elsevier, vol. 30(11), pages 1857-1883, November.
    9. Buiter, Willem, 2006. "How Robust is the New Conventional Wisdom? The Surprising Fragility of the Theoretical Foundations of Inflation Targeting and C," CEPR Discussion Papers 5772, C.E.P.R. Discussion Papers.
    10. repec:ebl:ecbull:v:5:y:2005:i:2:p:1-12 is not listed on IDEAS
    11. Ismihan, Mustafa & Ozkan, F. Gulcin, 2011. "A Note On Public Investment, Public Debt, And Macroeconomic Performance," Macroeconomic Dynamics, Cambridge University Press, vol. 15(2), pages 265-278, April.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scandj:v:102:y:2000:i:4:p:621-643. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.