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Please use this identifier to cite or link to this item:
http://hdl.handle.net/10023/657
| Title: | The cost of political intervention in monetary policy |
| Authors: | Cobham, David
Papadopoulos, Athanasios
Zis, George |
| Editors: | University of St Andrews. School of Economics and Finance |
| Keywords: | monetary policy
time-inconsistency
credibility |
| Issue Date: | 2001 |
| Citation: | School of Economics and Finance discussion paper series ; 0114 |
| Abstract: | Data from a unique monetary ‘experiment’ conducted in the UK during the period
1994-97 are used to investigate the cost of political intervention in monetary policy.
The paper finds that the difference between government bond yields in Germany (but
not the US) and the UK was systematically related to an index of the credibility of
monetary policy constructed on the basis of the frequency of agreements/
disagreements between the Minister of Finance who took the decisions on interest
rates and the Bank of England, whose recommendations were published with a lag,
with disagreements causing an increase in the yield differential. |
| Version: | Postprint |
| Description: | Previously in the University eprints HAIRST pilot service at http://eprints.st-andrews.ac.uk/archive/00000055/
Revised November 2001 |
| URI: | http://ideas.repec.org/p/san/wpecon/0114.html
http://hdl.handle.net/10023/657 |
| ISSN: | 0962-4031 |
| Type: | Working or discussion paper |
| Publication Status: | Not published |
| Status: | Non peer reviewed |
| Publisher: | School of Economics and Finance, University of St Andrews. |
| Appears in Collections: | School of Economics and Finance Discussion Paper Series 2001
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