Credit rating agencies have been an important determinant of countries' cost of capital in the last couple of decades. This paper studies the effect of the governance of modern central banks on the ratings assigned by the credit rating agencies Standard and Poor's and Moody's. Until recently,...

Independent central banks prefer balanced budgets due to the long-run connection between deficits and inflation and can enforce their preference through interest rate increases and denial of credit to the government. We argue that legal central bank independence (CBI) deters fiscal deficits...

Theory and empirical evidence show that low inflation is a precondition for economic growth. Independent central banks and fixed exchange rates are institutional mechanisms that help keep in ation low by lending monetary policy credibility to governments. However, the two institutions are...

Though central banks make consequential macroeconomic decisions, little is known about diversity at the helm of these institutions. This article investigates what factors drive the gender balance in central bank boards. I document the lack diversity of central bank leadership and argue that it...

Central bank independence is a common feature in advanced economies. Delegation of monetary policy to an independent central bank with a clear mandate for price stability has proven to be successful in keeping a check on inflation and providing a trusted currency. However, it is also a fact that...

Modern economic policymaking requires effective communication. In particular, central bankers communicate facts about the economy and aim to shape individuals’ expectations about the economic future and the central bank’s capacity to manage it. To do so effectively, central bankers must...