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This paper analyzes the relationship between inflation, output and government size by reexamining the time inconsistency of optimal monetary and fiscal policies in a general equilibrium model with staggered timing structure for the acquisition of nominal money à la Neiss (Neiss, Katharine S....
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reports new theory and tests related to delegation of monetary policy to an independent central bank. The authors find that …
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In this paper I investigate the trade-off a legislature faces in the choice of instruments to ensure accountability by bureaucrats with private information. The legislature can either design a state-contingent incentive scheme or “menu law” to elicit the bureau's information or it can simply...
Persistent link: https://www.econbiz.de/10013151463
theory and tests related to delegation of monetary policy to an independent central bank. The authors find that delegation …
Persistent link: https://www.econbiz.de/10014130509
the Problems of Control -- 6. The Choice of Monetary Instruments and the Theory of Bureaucracy -- 7. Bureaucratic Theory … Financing and Bureaucratic Rents -- 2. Monetary Policy: Theory and Practice -- 3. Inflationary Bias of the Federal Reserve … not tried to present a theory of why the Fed behaves the way it does. The dominant theory of Fed behavior is that the Fed …
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