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Credibility and Flexibility with Monetary Policy Committees

  • Mihov, Ilian
  • Sibert, Anne

We consider independent monetary policy committees as a simple way of attaining relatively low inflation without completely sacrificing the stabilization role of monetary policy. If central banker's types are unknown, then for a wide range of parameters an independent monetary policy committee is better than either a mandated zero-inflation rule or discretionary policy conducted by an opportunistic central banker.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3278.

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Date of creation: Mar 2002
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Handle: RePEc:cpr:ceprdp:3278
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