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We develop a model in which two firms that have proposed to merge are privately informed about merger-specific efficiencies. This enables the firms to influence the merger control procedure by strategically revealing their information to an antitrust authority. Although the information improves...
Persistent link: https://www.econbiz.de/10005067524
This 2003 Institute for Fiscal Studies Lecture addresses two sets of issues relevant to current and prospective future E(M)U members: the consequences of the Stability and Growth Pact for fiscal-financial sustainability and macroeconomic stability, and some risks associated with operational...
Persistent link: https://www.econbiz.de/10005662197
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 …
Persistent link: https://www.econbiz.de/10005666788
. 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 …
Persistent link: https://www.econbiz.de/10005791443
We use a new theory of price determination – developed by Woodford, Simms and others – to characterize central bank …
Persistent link: https://www.econbiz.de/10005792408
inflation and income inequality are reduced without sacrificing output growth if the government assumes a leadership role …
Persistent link: https://www.econbiz.de/10005123515
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 …
Persistent link: https://www.econbiz.de/10005123549
. 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 …
Persistent link: https://www.econbiz.de/10005123596
The literature argues that the benefits of an independent Central Bank accrue at no cost to the real side. In this paper, we argue that the lack of correlation between monetary autonomy and output variability is due to the proactive role of fiscal policy when faced with rigid monetary...
Persistent link: https://www.econbiz.de/10005124130
The problem of monetary policy delegation is formulated as a two-stage game between the government and the central bank. In the first stage the government chooses the institutional design of the central bank. Monetary and fiscal policy are implemented in the second stage. When fiscal policy is...
Persistent link: https://www.econbiz.de/10005498019