The optimal choice of central bank independence and conservatism under uncertainty

Alesina, 1993, Central bank independence and macroeconomic performance: some comparative evidence, Journal of Money, Credit and Banking, 25, 151, 10.2307/2077833 Alesina, 1987, Rules and discretion with uncoordinated monetary and fiscal policies, Economic Inquiry, 25, 619, 10.1111/j.1465-7295.1987.tb00764.x Barro, 1983, A positive theory of monetary policy in a natural rate model, Journal of Political Economy, 91, 589, 10.1086/261167 Beetsma, 1998, Inflation targets and contracts with uncertain central banker preferences, Journal of Money, Credit and Banking, 30, 384, 10.2307/2601107 Berger, 2005, Does conservatism matter? A time-series approach to central bank behaviour, Economic Journal, 115, 745, 10.1111/j.1468-0297.2005.01018.x Berger, 2001, Central bank independence: update on theory and evidence, Journal of Economical Survey, 15, 3, 10.1111/1467-6419.00131 Berger, 2009, Forecasting ECB monetary policy: accuracy is a matter of geography, European Economic Review, 53, 1028, 10.1016/j.euroecorev.2008.12.003 Berlemann, M., Hielscher, K., 2010. Effective monetary policy conservatism: a comparison of 11 OECD countries, HWWI Research Paper 2–21. Blinder, 2008, Central bank communication and monetary policy: a survey of theory and evidence, Journal of Economic Literature, 46, 910, 10.1257/jel.46.4.910 Brainard, 1967, Uncertainty and the effectiveness of policy, American Economic Review, 57, 411 Clarida, 1999, The science of monetary policy: a New Keynesian perspective, Journal of Economic Literature, 37, 1661, 10.1257/jel.37.4.1661 Crowe, 2008, Central bank independence and transparency: evolution and effectiveness, European Journal of Political Economy, 24, 763, 10.1016/j.ejpoleco.2008.06.004 Cukierman, 1992 Cukierman, 2002, Are contemporary central banks transparent about economic models and objectives and what difference does it make?, Federal Reserve Bank of St. Louis Review, 84, 15 Cukierman, 2009, The limits of transparency, Economic Notes, 38, 1, 10.1111/j.1468-0300.2009.00208.x Cukierman, 1999, Central bank independence, centralization of wage bargaining, inflation and unemployment – theory and evidence, European Economic Review, 43, 395, 10.1016/S0014-2921(98)00128-7 Cukierman, 1986, A theory of ambiguity, credibility and independence under discretion and asymmetric information, Econometrica, 54, 1099, 10.2307/1912324 Cukierman, 1992, Measuring the independence of central banks and its effect on policy outcomes, World Bank Economic Review, 6, 353, 10.1093/wber/6.3.353 de Haan, 1997, What really matters: conservativeness or independence?, Banca Nazionale Del Lavoro Quarterly Review, 200, 23 Demertzis, 2007, Central bank transparency in theory and practice, Journal of Macroeconomics, 29, 760, 10.1016/j.jmacro.2005.06.002 Demertzis, 2004, An independent central bank faced with elected governments, European Journal of Political Economy, 20, 907, 10.1016/j.ejpoleco.2003.12.004 Dincer, 2010, Central bank transparency: causes, consequences and updates, Theoretical Inquiries in Law, 11, 10.2202/1565-3404.1237 Dixit, 2001, Monetary-fiscal policy interaction and commitment versus discretion in a monetary union, European Economic Review, 45, 977, 10.1016/S0014-2921(01)00134-9 Dixit, 2003, Interactions of commitment and discretion in monetary and fiscal issues, American Economic Review, 93, 1522, 10.1257/000282803322655428 Eijffinger, 1998, The trade off between central bank independence and conservativeness, Oxford Economic Papers, 50, 397, 10.1093/oxfordjournals.oep.a028653 Eijffinger, 2008, The trade off between central bank independence and conservativeness in a New Keynesian framework, European Journal of Political Economics, 24, 742, 10.1016/j.ejpoleco.2008.06.001 Faust, 2001, Transparency and credibility: monetary policy with unobservable goals, International Economic Review, 42, 369, 10.1111/1468-2354.00114 Faust, 2002, The equilibrium degree of transparency and control in monetary policy, Journal of Money, Credit and Banking, 34, 520, 10.1353/mcb.2002.0037 Geraats, 2009, Trends in monetary policy transparency, International Finance, 12, 235, 10.1111/j.1468-2362.2009.01239.x Goldberg, 2010, Establishing credibility: evolving perceptions of the European Central Bank Grüner, 2009, Unions, wage setting and monetary policy uncertainty, BE Journal of Macroeconomics, 9 Hayo, 2010, The Relationship between Central Bank Independence and Inflation, 179 Hefeker, 2011, Uncertainty and fiscal policy in an asymmetric monetary union, Open Economical Review, 22, 163, 10.1007/s11079-009-9120-1 Hughes Hallett, 2005, Independence before conservatism: transparency, politics, and central bank design, Germam Economic Review, 6, 1, 10.1111/j.1465-6485.2005.00119.x Hughes Hallett, 2007, Fiscal leadership and central bank design, Canadian Journal of Economics, 40, 607, 10.1111/j.1365-2966.2007.00423.x Jensen, 2002, Optimal degrees of transparency in monetary policymaking, Scandian Journal of Economics, 104, 399, 10.1111/1467-9442.00294 Kydland, 1977, Rules rather than discretion: the inconsistency of optimal plans, Journal of Political Economy, 85, 473, 10.1086/260580 Laurens, 2009 Lippi, 2000, Median voter preferences, central bank independence and conservatism, Public Choice, 105, 323, 10.1023/A:1005140329575 Mishkin, 2004, Can central bank transparency go too far?, 48 Muscatelli, 1999, Optimal inflation contracts and inflation targets with uncertain central bank preferences: acccountability through independence?, Economical Journal, 108, 529 Rogoff, 1985, The optimal degree of commitment to a monetary target, The Quarterly Journal of Economy, 100, 1169, 10.2307/1885679 Siklos, 2008, No single definition of central bank independence is right for all countries, European Journal of Political Economy, 24, 802, 10.1016/j.ejpoleco.2008.07.004 Sorensen, 1991, Political uncertainty and macroeconomic performance, Economics Letters, 37 Svensson, 1997, Optimal inflation targets, ’conservative’ central banks, and linear inflation contracts, American Economic Review, 87, 98 Walsh, 1995, Optimal contracts for central bankers, American Economic Review, 85, 150 Westelius, 2009, Imperfect transparency and shifts in the central bank’s output gap target, Journal of Economic Dynamics and Control, 33, 985, 10.1016/j.jedc.2008.11.002 Weymark, 2007, Inflation, government transfers, and optimal central bank independence, European Economic Review, 51, 297, 10.1016/j.euroecorev.2006.01.005 Woodford, 2003