Central Bank Independence, Targets and Credibility: Political and Economic Aspects of Delegation Arrangements for Monetary Polic

Provides a welfare analysis of central banking, addressing such topics as imperfect monetary control, rational voters, distributional issues, and uncertainty about future policy objectives. The role played by the different institutional elements that contribute to the making of an independent central bank is assessed, as well as the distinction between central bank independence and targets. The final essay analyzes the links between central bank independence, policy strategies, and economic outcomes in a cross-section of 49 countries. Annotation c. Book News, Inc., Portland, OR (booknews.com)