Series: IMF Working Papers
Author(s): Gauti Eggertsson , and Eric Le Borgne
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2003
Keywords: Central Bank Independece, Career Concerns, Elections, Experimetation, inflation, monetary policy, central bank, average inflation, Structure, Scope
We propose a theory to explain why, and under what circumstances, a politician gives up rent and delegates policy tasks to an independent agency. We apply this theory to monetary policy by extending a standard dyna...