Central Bank Design
- (pp. 17-44)
AbstractStarting with a blank slate, how could one design the institutions of a central bank for the United States? This paper explores the question of how to design a central bank, drawing on the relevant economic literature and historical experiences while staying free from concerns about how the Fed got to be what it is today or the short-term political constraints it has faced at various times. The goal is to provide an opinionated overview that puts forward the trade-offs associated with different choices and identifies areas where there are clear messages about optimal central bank design.
Citation2013. "Central Bank Design." Journal of Economic Perspectives, 27(4): 17-44. DOI: 10.1257/jep.27.4.17
- E52 Monetary Policy
- E58 Central Banks and Their Policies