Discussion paper

DP3278 Credibility and Flexibility with Monetary Policy Committees

Anne Sibert Ilian Mihov

6 Mar 2002

We consider independent monetary policy committees as a simple way of attaining relatively low inflation without completely sacrificing the stabilization role of monetary policy. If central banker's types are unknown, then for a wide range of parameters an independent monetary policy committee is better than either a mandated zero-inflation rule or discretionary policy conducted by an opportunistic central banker.

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Citation

Sibert, A and I Mihov (2002), ‘DP3278 Credibility and Flexibility with Monetary Policy Committees‘, CEPR Discussion Paper No. 3278. CEPR Press, Paris & London. https://cepr.org/publications/dp3278