- Copyright Page
- How Should Votes Be Cast and Counted?
- Voters and Representatives: How Should Representatives Be Selected?
- Divided Government: The King and the Council
- Executive Veto Power and Constitutional Design
- Politics and the Legal System
- Constitutional Review
- Institutions for Amending Constitutions
- Constitutional Transition
- Electoral Systems in the Making
- Choosing Voting Rules in the European Union
- Leviathan, Taxation, and Public Goods
- Fiscal Powers Revisited: The Leviathan Model After 40 Years
- Are There Types of Dictatorship?
- Are There Really Dictatorships?: The Selectorate and Authoritarian Governance
- The Coup: Competition for Office in Authoritarian Regimes
- The Logic of Revolutions: Rational Choice Perspectives
- Direct Democracy and Public Policy
- Policy Differences Among Parliamentary and Presidential Systems
- The Significance of Political Parties
- The Least Dangerous Branch?: Public Choice, Constitutional Courts, and Democratic Governance
- Challenges in Estimating the Effects of Constitutional Design on Public Policy
- The Political Economy of Taxation: Power, Structure, Redistribution
- The Politics of Central Bank Independence
- The Political Economy of Redistribution Policy
- Political Participation and the Welfare State
- Institutions for Solving Commons Problems: Lessons and Implications for Institutional Design
- Rational Ignorance and Public Choice
- Is Government Growth Inevitable?
- The Political Economy of International Organizations
- The Politics of International Trade
- Politics, Direct Investment, Public Debt Markets, and the Shadow Economy: What Do We (Not) Know?
- The Politics of International Aid
- Is Democracy Exportable?
- Ancient Greece: Democracy and Autocracy
- Christian History and Public Choice
- Voting at the U.S. Constitutional Convention
- Precursors to Public Choice
- Estimates of the Spatial Voting Model
- The Dimensionality of Parliamentary Voting
- Voting and Popularity
- Detection of Election Fraud
- Experimental Public Choice: Elections
- Experimental Evidence on Expressive Voting
Abstract and Keywords
This chapter reviews recent research on the political economy of monetary policymaking, both by economists and by political scientists. The traditional argument for central bank independence is the desire to counter inflationary biases. However, studies in political science suggest that governments may delegate monetary policy in order to detach it from political debates and power struggles. The recent financial crisis has changed the role of central banks, as evidenced by unconventional monetary and macro-prudential policy measures. Financial stability and unconventional monetary policies have stronger distributional consequences than conventional monetary policies, with implications for central bank independence. However, the authors’ results do not suggest that that has happened in the wake of the Great Financial Crisis, nor has there been higher turnover of central bank governors.
Jakob de Haan is Professor of Political Economy at the University of Groningen.
Sylvester Eijffinger is Full Professor of Financial Economics and Jean Monnet Professor of European Financial and Monetary Integration at Tilburg University
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