Series: IMF Working Papers
Author(s): Christopher Crowe
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2006
Keywords: coalition formation, treatment effects, monetary policy, central bank, inflation aversion, independent central bank, Noncooperative Games, Models of Political Processes: Rent-seeking, Elections, Legislatures
A motivation for central bank independence (CBI) is that policy delegation helps politicians manage diverse coalitions. This paper develops a model of coalition formation that predicts when delegation will occur. A...