Inflation Versus Central Bank Independence? Banking Regulation and Financial Stability in the U.S. and Germany

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Increasing the independence of a central bank from political influence, although ex-ante socially beneficial and initially successful in reducing inflation, would ultimately fail to lower inflation permanently. The smaller anticipated policy distortions implemented by a more independent central bank would induce the fiscal authority to decrease current distortions by increasing the deficit. Ove...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 1995

ISSN: 1556-5068

DOI: 10.2139/ssrn.608202