HWWI Divider
european central bank, frankfurt, river
Refereed Articles

Monetary Policy and Central Bank Independence under Endogenous Preferences

Michael Berlemann, Andrea Schneider (2014),
Journal of Economic Research 19(2), 125-136.

In this paper we study the effects of monetary policy under endogenous conservatism. We find a feedback mechanism of macroeconomic outcomes on policy conservatism to destabilize the economy or at least to contribute to considerable adjustment costs. Central bank independence turns out to be a suitable solution to this problem.

Our authors

External authors

Andrea Schneider