characterize equilibrium inflation and employment under central bank dependence and independence. We also endogenize the decisions … countries, independence is negatively correlated with average inflation and inflation variability and uncorrelated with …; (iii) some independent central banks do not generate an inflation bias yet stabilize. …

number of central banks in light of their complex role of inflation guardians, bankers’ banks, financial industry regulators …

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 …

inflation and stabilization. We analyse the role of the political independence of the ECB and the effect on policy choices of …

. 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 …