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Edwardo pregunto:
I enjoy travelling <a href=" http://www.memories-book.co.uk/blog/why-be-a-teacher-essay/ ">essays on china</a> I would support having someone in charge of monetary policy who is more inflation averse than I, precisely because of commitment. Can it work?Just look at the evidence of… a recent paper by Alberto Alesina and me…. Countries like Germany,where the monetary authoritie sare independent, achieve very low rates of inflation without monetary rules. But one also finds there is no systematic difference in real economic performance among those countries that achieve low inflation and political independence for monetary policy and those that don´t have independent central banks. Unless it can be demonstrated that the political institutional route to low inflation--to commitment that preserves the discretion to deal with unexpected contingencies and multiple equilibria--is undesirable or cannot work, I don´t see any case at all for monetary rules. |
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