relation between CBI and the performance of the economy. Section 3 discusses lessons from stabilization of inflation, reviews … price stability. The section discusses the risks associated with flexible inflation targeting, issues of accountability and …

. Nevertheless, an independent central bank is found not to produce an inflation bias because it is accountable to the majority of … the population, which is not involuntarily unemployed. In contrast, government-dependence leads to an inflation bias and a … higher variability of inflation, but has an ambiguous effect on employment variability. The reason is that democratic …

We use a new theory of price determination – developed by Woodford, Simms and others – to characterize central bank …

inflation and income inequality are reduced without sacrificing output growth if the government assumes a leadership role …

Monetary theory and policy are part of intertemporal public finance. This Paper reviews some interesting recent … the so-called Fiscal Theory of the Price Level, a logically inconsistent theory of the link between the government budget …

. It shows that goal-independence and goal-transparency (an explicit inflation target) at the central bank are substitute … ‘commitment technologies’ that reduce inflation and build credibility. In addition, goal-transparency is shown to be socially … deficit’, institutional reforms should follow the Bank of England scenario, in which an explicit inflation target is first …