Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56582
Year of Publication: 
2010
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 01-2010
Publisher: 
Philipps-University Marburg, Faculty of Business Administration and Economics, Marburg
Abstract: 
This paper revisits the trade-of between central bank independence and conservatism using a New Keynesian model with uncertainty about the central banker's output gap target. It is shown that when this uncertainty is high, the trade-of no longer holds. In this case, the optimal combination between independence and conservatism is characterised by complementarity.
Subjects: 
central bank independence
conservatism
transparency of monetary policy
JEL: 
E52
E58
Document Type: 
Working Paper

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