In this paper we investigate central bank accountability by looking at the effect of transparency in a simple monetary …'s accountability. The paper shows that transparency leads to a lower expected rate of inflation and less stabilization of supply shocks. … banker's preferences for inflation stabilization relative to output stabilization. Transparency enhances the central bank …

they perceive public scrutiny (accountability) as intrusive. Combining these findings implies that both goal-transparency …. It shows that goal-independence and goal-transparency (an explicit inflation target) at the central bank are substitute … ‘commitment technologies’ that reduce inflation and build credibility. In addition, goal-transparency is shown to be socially …

Central bank transparency has become the topic of a lively public and academic debate on monetary policy. Unfortunately …, it has been complicated by the fact that transparency is a qualitative concept that is hard to measure. This Paper … proposes a comprehensive index for central bank transparency that comprises the political, economic, procedural, policy and …

of fiscal policy when faced with rigid monetary objectives. None of the attempts in the literature to measure these … correlations allow for a changing fiscal role. As monetary policy is handled by an independent authority, fiscal and wage …

This paper examines the consequences for the sustainability of fiscal policy of imposing restrictive ceilings on … deficits and debt. Our theoretical framework is a generalization of the government intertemporal budget constraint which allows … how published forecasts can be used and we derive a measure of fiscal pressure suitable for the medium term. We find that …

of different approaches to fiscal equalization schemes (Boadway and Flatters, 1982, and Weingast, 2006). We show that tax …

We consider "robust stability" of a rational expectations equilibrium, which we define as stability under discounted … exhibit robust stability. We consider a variety of interest-rate rules, including instrument rules, optimal reaction functions … Honkapohja (2003, 2006) deliver robust learning stability. In contrast, many proposed alternatives become unstable under learning …

make an attempt to explain the dynamic stability of the system. This attempt gives a central place to movements in desired …