inflation prone government. Step two argues independence is the solution to that problem. This paper challenges that case and …

and efficacy of some unconventional monetary instruments, of inflation targeting and of central bank independence. We also …

-bias arises due to the lobbying pressures of outsiders. Furthermore, we show that if lobbying pressures are high enough, an … feature of lobbying pressures has an impact on the stabilization properties of monetary policy. When a supply shock occurs …, the shock is totally absorbed by a forward-looking trade-union which has no costs of lobbying, independently of any finite …

The aim of this paper is to review the historical development of monetary policy theory since the 1980s using as focal …