Central bank independence and conservatism under uncertainty: Substitutes or complements?

This paper revisits the trade-off between central bank indepen- dence and conservatism using a New Keynesian model with uncertainty about the central banker's output gap target. It is shown that when this uncertainty is high, the trade-off no longer holds. In this case, the optimal combination...

Full description

Saved in:
Bibliographic Details
Published in:MAGKS - Joint Discussion Paper Series in Economics (Band 01-2010)
Main Authors: Hefeker, Carsten, Zimmer, Blandine
Format: Work
Language:English
Published: Philipps-Universität Marburg 2010
Subjects:
Online Access:PDF Full Text
Tags: Add Tag
No Tags, Be the first to tag this record!
MAGKS - Joint Discussion Paper Series in Economics