It is argued that credibility problems in macroeconomics hardly exist, and certainly do not motivate central bank independence. The Rogoff banker, and much work which follows should be interpreted as blueprints for good policy, not institutional reforms. There are likely to be significant but at...

The most common approach to testing for the benefits of central-bank independence is argued to be methodologically flawed for the reason that the measure of independence does not permit a test of the hypothesis which suggests that these benefits exist. Particular doubt is cast on the merits of...