Changing the Institutional Design of Central Banks
25 Pages Posted: 7 Sep 1999
Date Written: April 1999
The paper analyzes the institutional changes that have taken place during the 1990s at the central banks of major OECD countries. They have generally resulted in an increased degree of independence, transparency and accountability as well as in mandates more narrowly focused on the achieving and maintaining of price stability. It is argued that recent theoretical and empirical research on the institutional aspects of monetary policy are useful in interpreting these changes. The implications for the design of the European Central Bank are discussed against the background of this research and the experiences with the recent changes at national central banks.
JEL Classification: E5
Suggested Citation: Suggested Citation