Institutions and monetary policy: credibility, flexibility, and central bank independence

Front Cover
E. Elgar, 1995 - Business & Economics - 252 pages
0 Reviews
. . . a rigorous and scholarly analysis of the nature of central bank independence (CBI). Luckily for the non-mathematical reader, there are clear explanations, laying out the argument that is developed in fully worked mathematical models: but much is strictly for the technically competent. Central Banking Central bank independence is a key issue for political and monetary authorities in many countries. In Institutions and Monetary Policy, Eric Schaling looks at the impact of different central banks on price stability and macroeconomic performance, and their optimal degree of legislative independence. After introducing and surveying the rules versus discretion debate in monetary policy, Eric Schaling then investigates the relationship between domestic monetary institutions and macroeconomic performance. The author compares central bank independence in twelve industrial countries Australia, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, the United Kingdom, the United States, Sweden and Switzerland and prepares an index of his results. The relationship between central bank independence, inflation and output growth is extensively discussed and a series of propositions tested for the same set of countries over the period from 1972 to 1991. Normative issues are investigated in the later part of the book including the optimal degree of central bank independence in relation to, first, the inflation rate and, second, wage formation in a totally unionized economy. Institutions and Monetary Policy will be welcomed by scholars and policymakers concerned with the increasingly important role of institutions in monetary policy and the relation between degrees of central bank independence and political and economic outcomes.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.


Central Bank Independence in Twelve Industrial Countries
Theory and Evidence

8 other sections not shown

Common terms and phrases

References to this book

All Book Search results »