Monetary policy and central bank independence under endogenous conservatism.

• Autores: Michael Berlemann, Andrea Schneider
• Localización: Journal of economic research, ISSN 1226-4261, Vol. 19, Nº. 2, 2014, págs. 125-136
• Idioma: inglés
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• Resumen

  • In this paper we study effects of monetary policy under endogenous conservatism. We find a feedback mechanism of macroeconomic outcomes on polidy conservatism to destabiliza the economy or at least to contribute to considerable adjustment cost. Central bank independence turns out to be a suitable solution to this problem.