Effective policies to stabilize macroeconomic conditions are essential for economic growth. In the context of this study, policymakers pursue these macroeconomic stability objectives by adjusting fiscal and monetary policy. The study used impulse response functions (IRFs) derived from vector...

The rise of central bank independence (CBI) raises questions regarding the importance of CBI for economic growth. Where conventional theory focuses on the link between CBI and inflation as the common primary objective of any central bank is price stability, this paper explores the theoretical...

The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al. (2003) uses a richer model but still finds deflation optimal. In an otherwise standard new Keynesian model we show that, if households have hyperbolic...

Recent literature has emphasised that the degradation of nature can have significant implications for central banks in delivering on their mandates. While the primary and most effective actors to address the nature crisis are governments and legislators, central banks will also need to take into...