Central banks, whether independent or not, may occasionally be subject to external pressures to change policy … objectives. We analyze the optimal response of central banks to such pressures and the resulting macroeconomic consequences. We … accommodation effect. Simultaneously, the central bank tries to anchor inflation by promising to be even " more conservative" in the …

steps to transform their economies from command systems to market-based systems. First, increased central bank independence … specifically, in the first section of this paper, we develop indices of central bank independence (CBI) for twelve transition … suggests that the transition economies with more independent central banks have achieved lower inflation than their …

the central banks, or their equivalent, in six of the main East Asian developing economies. Some of these economies have … issued by the national government--not the central bank--be developed for the central bank's use in its monetary policy …