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 …

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 …

Recently, several central banks have lost their bank supervisory responsibilities, in part because it has not been … monetary policy should be an important consideration when evaluating the structure of the central bank. …