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In economically volatile conditions in which it is more difficult for the public to distinguish inflation deliberately generated by government from inflation created by unanticipated economic shocks, the anti-inflationary effect of central bank independence will be unchanged but the...
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policies. Theory provides strong reason to believe that while central bank independence will prove more effective as a … players will have no effect on the credibility of exchange rate pegs. Conversely, the authors argue that central bank …
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in the context of different institutions and different degrees of citizen information about government policies. Theory … effect on the credibility of exchange rate pegs. Conversely, Keefer and Stasavage argue that central bank independence does …
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We test a simple model of exchange rate regime choice with data for 65 non-OECD countries covering the period 1980-94.We find that the variance of output at home and in potential target c ountries as well as the correlation between home and foreign real activity are powerful and robust...
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