The perceptions of a central bank's inflation aversion may reflect institutional structure or, more dynamically, the … for persistent variation in market perceptions of central bank inflation aversion. The first years of the European Central …

Granting central banks independence from short-term political control is widely assumed to decrease inflation by … paper does not find evidence that the costs of disinflation are lower in countries with independent central banks, even when … differences in contracting behavior are taken into account. It also does not find evidence that central bank independence inhibits …

Central bank communication plays an important role in shaping market participants' expectations. This paper studies a … shows that agents' learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce "learning equilibria" in which the economy …

Making the central bank more independent from political pressures lowers inflation and increases the primary deficit … financial burden of accumulated public debt. Endowing instead the central bank with an explicit inflation target lowers long …

imply implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. We find … that inflation forecasts are central for good policy rules under inflation targeting. Some simple instrumental and …

We use a version of the Fuhrer-Moore model to study the effects of expectations and central bank credibility on the … model that vary according to the way that expectations are formed (rations versus adaptive) and the degree of central bank … central bank may face diminishing returns in its efforts to enhance credibility. …

credibility of the central bank can be considered in assessing the cost of deliberate and opportunistic disinflation. …