Dai, Meixing (2010): Multiplicative uncertainty, central bank transparency and optimal degree of conservativeness. Published in: Economics Bulletin , Vol. Vol. 3, No. no.3 (6. July 2010): pp. 1720-1726.
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This paper extends the results of Kobayashi (2003) and Ciccarone and Marchetti (2009) by considering the optimal choice of central bank conservativeness. It is shown that the government can choose a sufficiently populist but opaque central banker so that higher multiplicative uncertainty improves the social welfare only when the society is very conservative.
|Item Type:||MPRA Paper|
|Original Title:||Multiplicative uncertainty, central bank transparency and optimal degree of conservativeness|
|Keywords:||Multiplicative uncertainty; optimal degree of conservativeness; Brainard conservatism; central bank transparency.|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
|Date Deposited:||08. Feb 2011 09:27|
|Last Modified:||13. Feb 2013 09:08|
Brainard, W.C. (1967) “Uncertainty and the effectiveness of policy” American Economic Review 57, 411–425.
Ciccarone, G. and E. Marchetti (2009) “Revisiting the role of multiplicative uncertainty in a model without inflationary bias” Economics Letters 104, 37-39.
Ciccarone, G., G. Di Bartolomeo and E. Marchetti (2007) “Unions, fiscal policy and central bank transparency” The Manchester School 75, 617-633.
Kobayashi, Teruyoshi (2003) “Multiplicative uncertainty in a model without inflationary bias” Economics Letters 80, 317–321.
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