Most theoretical central bank models use short horizons and focus on a single tradeoff. However, in reality central … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank’s welfare decreases with …

welfare gain associated with making the central bank less conservative than society, however if the outside option is in real … of central bank conservatism. …

history of honesty and a high level of central bank independence. According to our respondents, the Federal Reserve is the … most credible, transparent and independent central bank out of seven large central banks. The ECB is not perceived as …

distribution in the European Central Bank (ECB) council. We show that, in a model where labor unions internalize the inflationary …

The empirical literature on central banking has found measures of central bank independence/conservatism to be …. We find that an increase in central bank conservatism leads to higher short-term interest rates and a more activist … economy, higher output and somewhat lower inflation. We also investigate the interaction between the central bank and the …

A central bank digital currency, or CBDC, may provide an attractive alternative to traditional demand deposits held in … private banks. When offering CBDC accounts, the central bank needs to confront classic issues of banking: conducting maturity … version of a Diamond and Dybvig (1983) model, with an additional and exogenous price stability objective for the central bank …

This paper examines the role of central bank governors in monetary policy decisions taken by a committee. To carry out …

The European Central Bank (ECB) took many measures to combat the eurozone's rolling financial crisis. For providing …