NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Politics of Monetary Policy

Alberto F. Alesina, Andrea Stella

NBER Working Paper No. 15856
Issued in April 2010
NBER Program(s):   POL

In this paper we critically review the literature on the political economy of monetary policy, with an eye on the questions raised by the recent financial crisis. We begin with a discussion of rules versus discretion. We then examine the issue of Central Banks independence both in normal times, in times of crisis. Then we review the literature of electoral manipulation of policies. Finally we address international institutional issues concerning the feasibility, optimality and political sustainability of currency unions in which more than one country share the same currency. A brief review of the Euro experience concludes the paper.

download in pdf format
   (368 K)

email paper

This paper is available as PDF (368 K) or via email.

This paper was revised on December 5, 2011

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w15856

Published: Alesina, Alberto, Andrea Stella, B Friedman, and M Woodford. 2011. The Politics of Monetary Policy. In Handbook of Monetary Economics, Ch. 8 1000-1054. Amsterdam: North Holland.

Users who downloaded this paper also downloaded these:
Taylor A Historical Analysis of Monetary Policy Rules
Mishkin w16755 Monetary Policy Strategy: Lessons from the Crisis
Del Negro, Perri, and Schivardi w15847 Tax buyouts
Thoma, Torrisi, Gambardella, Guellec, Hall, and Harhoff w15851 Harmonizing and Combining Large Datasets – An Application to Firm-Level Patent and Accounting Data
Aït-Sahalia, Cacho-Diaz, and Laeven w15850 Modeling Financial Contagion Using Mutually Exciting Jump Processes
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us