Goal-Independent Central Banks Why Politicians Decide to Delegate

Author/creator Crowe, Christopher W. Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description6 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation 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. An analysis of policy preferences survey data and CBI indicators supports the predictions. Case studies, drawn from several countries' recent past and the nineteenth-century United States, provide further support. Finally, the model explains why the expected negative relationship between CBI and inflation is not empirically robust: endogenous selection biases the estimated effect towards zero. the data confirm this.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451909692
ISBN1451909691 (E-Book) Active Record
Stock number00013468

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