minimize the length and severity of the recession, would require a stronger commitment to low interest rates for an extended …

-inconsistency problem; 5) central bank independence helps improve the efficacy of monetary policy; and 6) a strong nominal anchor is the key …

from being too high, and by indicating that the central bank will pursue expansionary policies when output falls very far … will increase support for the central bank's policies and independence, but avoid a focus on the short run that could … interfere with the ability of the central bank to do its job effectively …

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of … the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this … that a central bank that wants to achieve maximum stability of economic activity should use a price index that gives …

fluctuations is more likely to be optimal and maintain support for the independence of the central bank …

the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource … seignorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv …) how central bank assets create income risk, and whether or not this threatens its solvency, and (v) how the central bank …