dc.contributor.author
Müller, Till
dc.date.accessioned
2018-06-08T08:13:58Z
dc.date.available
2009-08-05T10:30:59.461Z
dc.identifier.isbn
3-938369-90-6
dc.identifier.uri
https://refubium.fu-berlin.de/handle/fub188/19617
dc.identifier.uri
http://dx.doi.org/10.17169/FUDOCS_document_000000002840
dc.description.abstract
From a normative perspective, it is striking that the degree of central bank
independence (CBI) varies considerably across countries. Taking a political
economy perspective, this paper demonstrates how different degrees of CBI may
be the result of ‘strategic policy-making’. While an independent central bank
reduces the incumbent politician’s chances to influence current monetary
policy it also raises the costs of future policy changes for political
successors. Hence, when deciding on the degree of CBI, incumbent politicians
face a trade-off: current influence on monetary policy versus policy
durability. This paper shows how various factors change this trade-off and
hence the institutional choice. The model predicts that the level of CBI
incumbent politicians choose will increase in politicians’ ability to screen
central bankers’ preferences, in the degree of political polarization, and in
the weight politicians place on future policy outcomes. In contrast, the
likelihood for the implementation of an independent central bank decreases in
the re-election prospects of incumbents and in the utility central bankers
receive from holding office.
de
dc.relation.ispartofseries
urn:nbn:de:kobv:188-fudocsseries000000000310-0
dc.relation.ispartofseries
urn:nbn:de:kobv:188-fudocsseries000000000006-7
dc.rights.uri
http://www.fu-berlin.de/sites/refubium/rechtliches/Nutzungsbedingungen
dc.subject
Central Bank Independence
dc.subject
Political Economy
dc.subject.ddc
300 Sozialwissenschaften::330 Wirtschaft::339 Makroökonomie und verwandte Themen
dc.subject.ddc
300 Sozialwissenschaften::330 Wirtschaft::337 Weltwirtschaft
dc.title
Political determinants of central bank independence
refubium.affiliation
Wirtschaftswissenschaft
de
refubium.mycore.fudocsId
FUDOCS_document_000000002840
refubium.series.issueNumber
2008,19 : Volkswirtschaftliche Reihe
refubium.series.name
Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin
refubium.mycore.derivateId
FUDOCS_derivate_000000000561
dcterms.accessRights.openaire
open access