In this paper we show how two seemingly irrelevant accounting principles for central banks -the choice of the unit of account for its balance sheet and the method of inventory valuation of foreign currency reserves- can overstate or understate profits transferred to the treasury and how this can...

Can a heterodox economist find arguments in favor of Central Bank independence? Economists currently favor arguments in favor of Central Bank independence based on Barro-Gordon (1983 a,b), a very lsquo;orthodox' model. Consequently, those who view the economic orthodoxy with suspicion tend to...