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 …

Central banks, whether independent or not, may occasionally be subject to external pressures to change policy … objectives. We analyze the optimal response of central banks to such pressures and the resulting macroeconomic consequences. We … accommodation effect. Simultaneously, the central bank tries to anchor inflation by promising to be even " more conservative" in the …

steps to transform their economies from command systems to market-based systems. First, increased central bank independence … specifically, in the first section of this paper, we develop indices of central bank independence (CBI) for twelve transition … suggests that the transition economies with more independent central banks have achieved lower inflation than their …