The paper discusses key elements of optimal central bank design and applies its findings to the Eurosystem. A …

The empirical literature on central banking has found measures of central bank independence/conservatism to be …. We find that an increase in central bank conservatism leads to higher short-term interest rates and a more activist … economy, higher output and somewhat lower inflation. We also investigate the interaction between the central bank and the …

welfare gain associated with making the central bank less conservative than society, however if the outside option is in real … of central bank conservatism. …

the ability of the central bank to alleviate the fiscal burden by inuencing different terms in the government resource … seignorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv …) how central bank assets create income risk, and whether or not this threatens its solvency, and (v) how the central bank …

shows that the swap line mimics discount-window credit from the source central bank to the recipient-country banks using the … recipient central bank as the bearer of the credit risk. Second, from the perspective of the transmission of monetary policy, it …