Does a central bank that is independent of political influence deliver a better macroeconomic performance than one that implements monetary policy decisions taken by government? Does an inflation targeting agreement between central bank and government improve macroeconomic performance? And does...

The search for a relationship between central bank laws and monetary policy outcomes, which began three decades ago, is part of a larger enterprise to discover the monetary policy framework that delivers the best macroeconomic performance. A 'monetary policy framework' is a set of institutional...