What are the trade-offs between central bank independence and democratic accountability?

Nov 16, 2023 ... We find that contractionary monetary policy is more pronounced and persistent when the reaction function of the central bank is augmented with ... The Board is committed to do what is necessary to ensure that inflation in Australia returns to the 2 to 3 per cent target range over time. It is seeking to do ... Contractionary fiscal policy means cutting government spending and raising taxes to reduce aggregate demand. With higher taxes, consumer spending reduces ... Jan 16, 2015 ... Working Paper No. 521. By Benjamin Nelson, Gabor Pinter and Konstantinos Theodoridis ... To explain this 'waterbed' effect, we propose a standard ... Mar 26, 1999 ... By shifting toward more contractionary monetary policies, other gold standard countries could ensure that domestic interest rates would rise in ... Feb 22, 2019 ... ... contractionary. Developments at the time of the December FOMC meeting, including volatility in financial markets and increased concerns ... Our results are as follows. First, we find that firms' bank loan expectations react to monetary policy, with a contractionary shock leading to a downward. Notes: Impulse responses to a 1 percentage point contractionary monetary policy shock. The shaded areas display 90 percent confidence bands, computed using ... So, if the government takes expansionary fiscal policy action (shifting AD right) while the Federal Reserve engages in contractionary monetary policy (shifting ... Mar 7, 2023 ... How Can Fiscal Policy Support Monetary Policy? Fiscal policy can ... contractionary fiscal policy — with a host of spending and revenue ...