This article discusses the institutional mechanisms which characterized the degree of the independence of the Brazilian Central Bank since its creation in 1964 until the implementation of the Real Plan in 1994. The relationship between the Brazilian Treasury and the Central Bank is analyzed from...

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...