The empirical literature on central banking has found measures of central bank independence/conservatism to be …. We find that an increase in central bank conservatism leads to higher short-term interest rates and a more activist … economy, higher output and somewhat lower inflation. We also investigate the interaction between the central bank and the …

welfare gain associated with making the central bank less conservative than society, however if the outside option is in real … of central bank conservatism. …

distribution in the European Central Bank (ECB) council. We show that, in a model where labor unions internalize the inflationary …

distribution in the European Central Bank (ECB) council. We show that, in a model where labor unions internalize the inflationary …

central bank less conservative than society, however if the outside option is in real terms. As the nominal components of the … optimal if the government can choose the level of unemployment benefits as well as the degree of central bank conservatism. …