literature is that being transparent about operations and beliefs hinders the central bank in achieving the best outcome. In … other words, a central bank needs flexibility and therefore cannot be fully transparent. Using a forward-looking New …-Keynesian model, we find exactly the opposite. A central bank that is conservative improves output stabilization by being transparent …

stability, and some risks associated with operational independence of the central bank. The relevance of the second issue is not … costly in two contingencies. The first of these occurs when the central bank’s role as the lender of last resort needs to be … backed up by the willingness of the Treasury to recapitalize the central bank, should the need arise. The second contingency …

challenges. Section 2 reviews the changes that have occurred in the area of central bank independence (CBI) during the last … the evidence and implications of asymmetric central bank objectives and considers the issue of CBI within the broader … transparency and the impact of central bank capital and finances on its independence. …

. Nevertheless, an independent central bank is found not to produce an inflation bias because it is accountable to the majority of …

We use a new theory of price determination – developed by Woodford, Simms and others – to characterize central bank …’s present value budget constraint, we can say that the central bank is operating in a monetary dominant regime; it has the … the central bank is operating in a fiscal dominant regime. Numerical exercises suggest that price stability may be beyond …

government and the central bank for a government with both distributional and stabilization objectives. It is shown that both …

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 … economic variables. Mythos refers to the independent central bank. …

. It shows that goal-independence and goal-transparency (an explicit inflation target) at the central bank are substitute … deficit’, institutional reforms should follow the Bank of England scenario, in which an explicit inflation target is first …