to an independent agency. We apply this theory to monetary policy by extending a standard dynamic ""New …We propose a theory to explain why, and under what circumstances, a politician gives up rent and delegates policy tasks …-Keynesian"" stochastic general equilibrium model. This model gives a new theory of central bank independence that is unrelated to the …

This paper proposes a theory to explain why a politician delegates policy tasks to a technocrat in an independent … institution. It formalizes the rationales for delegation highlighted by Hamilton (1788) and by Blinder (1998). Delegation trades … opinion. One natural application of the theory is in the field of monetary policy where the model provides a new theory of …

affect the agency cost of debt. In the absence of asymmetric information, it shows that control of the firm by debtholders …

analyzed using standard tools in economics (incentives and principal-agent theory). We discuss the implications of our approach …

The paper uses finance and agency theory to establish two main propositions: First, that the conditionality attached to …

countries using an analytical framework based on principal-agent theory. This simple model can be applied to various PEM systems …