Interview with Harvard economist about financial globalization, risks to central bank independence and the history of …

In recent years several countries have granted greater independence to their central banks; others have made price … central bank credibility called the time inconsistency of monetary policy. The theory and some empirical aspects of time … central bank cannot credibly commit to honor commitments to keep inflation low than if it can. To ameliorate this "inflation …

policy, this article contrasts the forecasting processes at three central banks-the Reserve Bank of New Zealand, the Bank of … therefore come much closer to representing the central view of the policymakers. A similar, but less formal, interaction takes … models used by staff at these institutions. The analysis suggests that there is considerable similarity across central banks …