After introducing and surveying the rules versus discretion debate in monetary policy, Eric Schaling then investigates the relationship between domestic monetary institutions and macroeconomic performance. The author compares central bank independence in twelve industrial countries –...

Purpose – This paper aims to develops an estimable hybrid model that combines the micro-founded DSGE model with the flexibility of the atheoretical VAR model. Design/methodology/approach – The model is estimated via the maximum likelihood technique based on quarterly data on real gross...

This paper examines the relationship between in‡ation and in‡ation expectations of analysts, business, and trade unions in South Africa during the inflation targeting (IT) regime. We consider inflation expectations based on the Bureau of Economic Research (BER) quarterly survey observed...