Monetary Policy and Central Bank Independence: Economics and Politics - A Primer
Bocconi University - Department of Economics
March 1, 2011
Paolo Baffi Centre Research Paper No. 2011-85
In these notes we address the question of Central Bank Independence (hereafter CBI). We use a principal-agent model of the institutional regime. Citizens are the principals who demand CBI and the incumbent government is the agent which establishes the central bank regime, supplying it.
Number of Pages in PDF File: 17
Date posted: March 26, 2011