Perils of central banks as policymakers of last resort

S. Gürkaynak, Refet, Davig, Troy (2015), “Perils of central banks as policymakers of last resort”, Voxeu, 25 Nοεμβρίου

Central banks around the world have been shouldering ever-increasing policy burdens beyond their core mandate of stabilising prices. This column considers the social welfare implications when central banks take on additional mandates that are usually the domain of other policymakers. Additional mandates are shown to worsen trade-offs faced by the central bank, while distorting the incentives of other policymakers. Central bank ‘mandate creep’ may be detrimental to welfare.

Σχετικές Αναρτήσεις

• Claeys, Grégory, Wolff, Guntram B., (2015), “Is globalisation reducing the ability of central banks to control inflation?”, Bruegel Publlications, Issue 18, 12 Νοεμβρίου.
• Miller, Μ. & Zhang, L. (2014) “To exit the Great Recession, central banks must adapt their policies and models”, VoxEU Organisation, 10 Σεπτεμβρίου.