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This paper evaluates the link between central bank independence and inflation for the case of Colombia. It develops a … monetary dominant regime Central Bank Independence has led to a reduction in inflation and its variability in Colombia. However … besides Central Bank behaviour may account for higher-than-expected inflation rates in Colombia, particularly the existence of …
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According to the game-theoretic model of monetary policy, inflation is the consequence of time-inconsistent behavior of the monetary authority. The inflation bias can be eased by handing over the responsibility for monetary policy to an independent central bank and appointing a...
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What institutional arrangements for an independent central bank with a price stability mandate promote good policy outcomes when unconventional policies become necessary? Unconventional monetary policy poses challenges. The large scale asset purchases needed to counteract the zero lower bound on...
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