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In early 2020, the Bank for International Settlements (BIS) Representative Office for the Americas contacted a group of nine central banks that includes the members of the Consultative Council of the Americas (CCA) except the US Federal Reserve (Argentina, Brazil, Canada, Chile, Colombia,...
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We present a model in which the central bank, the current government and the median voter interact strategically and repeatedly. If the central bank is completely independent, it can implement an equilibrium in which the monetary policy is tight and beneficial in the long run. However, if the...
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