This paper surveys the state of the art on monetary policy and central bank behaviour from a public choice perspective. After a brief look at the roots of today's view of monetary policy conduct and institutional design in early work on political business cycles, the inflation-stabilisation...

This note merges the fact that real activity is persistent with a Barro-Gordon type model of endogenous monetary policy. It shows that persistence crucially affects policy choices. This applies in noncooperative games with a finite horizon and in games with an infinite horizon. Always,...

Empirical analyses of central bank foreign-exchange market intervention are typically cast in terms of a dichotomy between "leaning against the wind" and "exchange-rate targeting." Apparently, the profession has arrived at an almost unanimous verdict in favor of the former. Th is paper...