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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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    1. Kenneth Rogoff, 1985. "The Optimal Degree of Commitment to an Intermediate Monetary Target," The Quarterly Journal of Economics, Oxford University Press, vol. 100(4), pages 1169-1189.
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    9. Ivan Petrella & Raffaele Rossi & Emiliano Santoro, 2012. "Discretion vs. Timeless Perspective Policy-Making: the Role of Input-Output Interactions," Discussion Papers 12-20, University of Copenhagen. Department of Economics.
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    11. Hahn, Volker, 2016. "Designing monetary policy committees," Journal of Economic Dynamics and Control, Elsevier, vol. 65(C), pages 47-67.
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    1. repec:wsi:serxxx:v:62:y:2017:i:01:n:s0217590816500107 is not listed on IDEAS
    2. 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.
    3. Hahn, Volker, 2016. "Designing monetary policy committees," Journal of Economic Dynamics and Control, Elsevier, vol. 65(C), pages 47-67.

    More about this item

    Keywords

    Term length; Conservative central banker; New Keynesian model;

    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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