Modern theory has delivered both the conservative central banker and the principal-agent approaches as rationales for the independence of the central bank. The principal-agent approach directs attention to the importance of both clearly defining the goals of the central bank and its command in...

Intro -- Contents -- Preface -- Introduction: Central Bank Lessons from the Global Crisis -- I MONETARY POLICY IN VIEW OF THE CRISIS -- 1. Monetary Policy Frameworks after the Great Financial Crisis -- 2. The Role of Monetary Policy in Turkey during the Global Financial Crisis -- 3. An...

In this paper I reflect on my first year as Governor of the Bank of Israel, which I joined in May 2005. I start by describing the current state of the Israeli economy and monetary policy and economic developments during the past year. I then review a series of issues that have arisen during the...