commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

's institutional characteristics for inflation, output, and welfare. Our analysis delivers the following results. First, we demonstrate … bankers lead to more effective output stabilization at the expense of higher inflation variability. Third, larger committees … allow for more efficient stabilization of inflation but for less efficient output stabilization. Fourth, large committees …