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Monetary Policies for Developing Countries: The Role of Institutional Quality

Huang, Haizhou; Wei, Shang-Jin - C.E.P.R. Discussion Papers - 2005

institutions. Such an arrangement is inferior to an optimal inflation targeting, or a Rogoff-style central banker, whose optimal …

Persistent link: https://www.econbiz.de/10005789083

Central Banks: Powerful, Political and Unaccountable?

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2014

Central banks’ economic and political importance has grown in advanced economies since the start of the Great Financial Crisis in 2007. An unwillingness or inability of governments to use countercyclical fiscal policy has made monetary policy the only stabilization tool in town. However, much...

Persistent link: https://www.econbiz.de/10011084413

When Can Central Banks Anchor Expectations? Policy communication and controllability

Acocella, Nicola; Di Bartolomeo, Giovanni; Hughes … - C.E.P.R. Discussion Papers - 2008

Rational expectations are often used as a strong argument against policy activism, as they may undermine or neutralize the policymaker’s actions. Although this sometimes happens, rational expectations do not always imply policy invariance or ineffectiveness. In fact, in certain circumstances...

Persistent link: https://www.econbiz.de/10005661866

Optimal Policy with Low-Probability Extreme Events

Svensson, Lars E O - C.E.P.R. Discussion Papers - 2004

The optimal policy response to a low-probability extreme event is examined. A simple policy problem is solved for a sequence of different loss functions: quadratic, combined quadratic/absolute-deviation, absolute-deviation, combined quadratic/constant, and perfectionist. The Paper shows that,...

Persistent link: https://www.econbiz.de/10005661622

A Quantitative Exploration of the Opportunistic Approach to Disinflation

Aksoy, Yunus; Orphanides, Athanasios; Small, David; … - C.E.P.R. Discussion Papers - 2003

United States during the 1990s. Proponents of this approach recommend that, when inflation is moderate but still above the … long-run objective, the central bank should not move immediately to fight inflation, but rather wait for exogenous … circumstances — such as favourable supply shocks and unforeseen recessions — to deliver the desired reduction in inflation. While …

Persistent link: https://www.econbiz.de/10005123544

Monetary Misconceptions: New and Old Paradigmata and Other Sad Tales

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2000

Several recent studies imply that the response of national saving to fiscal policy is non-monotonic. In this paper, we use two data sets to search for the circumstances in which such non-monotonic responses arise: one refers to a sample of OECD countries, as in previous studies, and one to a...

Persistent link: https://www.econbiz.de/10005124252

Double-Edged Incentives: Institutions and Policy Coordination

Persson, Torsten; Tabellini, Guido - C.E.P.R. Discussion Papers - 1995

This paper illustrates some of the most important insights of the literature on international fiscal and monetary policy coordination. It notes that the analysis of international policy interactions is enriched by taking the incentives in the domestic policy process into account. These...

Persistent link: https://www.econbiz.de/10005067609

Does Monetary Unification Lead to Excessive Debt Accumulation?

Beetsma, Roel; Bovenberg, A Lans - C.E.P.R. Discussion Papers - 1995

If discretionary monetary policy implies an inflation bias, monetary unification boosts the accumulation of public debt …

Persistent link: https://www.econbiz.de/10005662146

Fiscal Stabilization Policy in a Monetary Union with Inflation Targeting

Andersen, Torben M - C.E.P.R. Discussion Papers - 2002

The interaction between a common monetary policy targeting inflation and decentralized fiscal policies aiming at output …

Persistent link: https://www.econbiz.de/10005666611

Structural Distortions and Decentralized Fiscal Policies in EMU

Beetsma, Roel; Bovenberg, A Lans - C.E.P.R. Discussion Papers - 2001

inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions. Although an … inflation target eliminates this inflation bias, it creates a conflict between monetary policy and discretionary fiscal policy …

Persistent link: https://www.econbiz.de/10005667138