Citation

Ties that Bind: Exchange Rate Regimes Under Central Bank Independence

Abstract | Word Stems | Keywords | Association | Citation | Get this Document | Similar Titles




STOP!

You can now view the document associated with this citation by clicking on the "View Document as HTML" link below.

View Document as HTML:
Click here to view the document

Abstract:

Traditionally, the goal of central bank independence has been seen as credible domestic monetary policy. However, by increasing the likelihood that the government will adopt a fixed exchange rate rather than maintain domestic control over monetary policy, an independent central bank may be a victim of its own success. Because a monetary policy set by an independent central bank may result in what the government considers to be adverse distributive consequences, governments may look for ways to mitigate the central bank’s control over monetary policy. In an environment in which the government values a fixed exchange rate, adopting a fixed exchange rate would not only vouchsafe the government’s preferred exchange rate regime, it might also provide the government with more favorable monetary conditions. While conventional wisdom suggests that central bank independence ties the hands of the government, the government in turn may seek to tie the hands of the central bank through the adoption of a fixed exchange rate. I test this proposition through a quantitative analysis of exchange rate choice in OECD countries and a qualitative analysis of Great Britain’s and Germany’s decisions to join the European Monetary System in 1978.

Most Common Document Word Stems:

monetari (255), polici (173), govern (173), bank (131), central (122), rate (104), exchang (102), independ (95), prefer (82), intern (77), condit (69), inflat (68), fix (67), labor (65), domest (59), capit (56), em (53), would (48), polit (48), control (46), accommod (44),

Author's Keywords:

central bank independence, exchange rate, monetary policy
Convention
Need a solution for abstract management? All Academic can help! Contact us today to find out how our system can help your annual meeting.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

Association:
Name: American Political Science Association
URL:
http://www.apsanet.org


Citation:
URL: http://www.allacademic.com/meta/p59888_index.html
Direct Link:
HTML Code:

MLA Citation:

O'Mahony, Angela. "Ties that Bind: Exchange Rate Regimes Under Central Bank Independence" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p59888_index.html>

APA Citation:

O'Mahony, A. , 2004-09-02 "Ties that Bind: Exchange Rate Regimes Under Central Bank Independence" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p59888_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Traditionally, the goal of central bank independence has been seen as credible domestic monetary policy. However, by increasing the likelihood that the government will adopt a fixed exchange rate rather than maintain domestic control over monetary policy, an independent central bank may be a victim of its own success. Because a monetary policy set by an independent central bank may result in what the government considers to be adverse distributive consequences, governments may look for ways to mitigate the central bank’s control over monetary policy. In an environment in which the government values a fixed exchange rate, adopting a fixed exchange rate would not only vouchsafe the government’s preferred exchange rate regime, it might also provide the government with more favorable monetary conditions. While conventional wisdom suggests that central bank independence ties the hands of the government, the government in turn may seek to tie the hands of the central bank through the adoption of a fixed exchange rate. I test this proposition through a quantitative analysis of exchange rate choice in OECD countries and a qualitative analysis of Great Britain’s and Germany’s decisions to join the European Monetary System in 1978.

Get this Document:

Find this citation or document at one or all of these locations below. The links below may have the citation or the entire document for free or you may purchase access to the document. Clicking on these links will change the site you're on and empty your shopping cart.

Abstract Only All Academic Inc.
Associated Document Available American Political Science Association
Associated Document Available Political Research Online

Document Type: .pdf
Page count: 34
Word count: 9438
Text sample:
Ties that Bind: exchange rate choice under central bank independence August 13 2004 Angela O'Mahony University of British Columbia Department of Political Science C472-1866 Main Mall Vancouver BC Canada V6T 1Z1 omahony@politics.ubc.ca Abstract: Traditionally the goal of central bank independence has been seen as credible domestic monetary policy. However by increasing the likelihood that the government will adopt a fixed exchange rate rather than maintain domestic control over monetary policy an independent central bank may be a victim of
John H. Oxford: Clarendon Press. Stasavage David. 2003. "Transpaarency Democratic Accountability and the Economic Consequences of Monetary Institutions." American Journal of Political Science 47 (2003):389-402. Statler Jocelyn. 1979. "The European Monetary System: From conception to Birth." International Affairs 55 (1979):206-25. Stephens Philip. Politics and the Pound: The Conservatives Struggle with Sterling. 1996. London Macmillan. Thelen Kathleen A. Union of Parts: Labor Politics in Postwar Germany. 1991. Ithaca Cornell University Press. Zis George. 1991. The international status of sterling. In


Similar Titles:
Coalition governments, social insurance and central bank independence versus inflation: fighting inflation alone or together?

Exchange Rate Regime, Central Bank Independence, and Political Business Cycles in Brazil


 
All Academic, Inc. is your premier source for research and conference management. Visit our website, www.allacademic.com, to see how we can help you today.