Friedrich, Christian; Guérin, Pierre; Leiva-Léon, Danilo - 2020 - Last updated: June 5, 2020
independence, which is defined as the response of central banks' policy interest rates to exogenous changes in inflation. We show … that central banks tighten their policy rates in response to an unanticipated increase in the inflation gap during times … same central banks to the same unanticipated changes in the inflation gap appear muted. Finally, by assessing the impact of …