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Inflation, distortionary taxation and the design of monetary policy: the role of social cohesion

Article Abstract:

The relationship between central banks and inflation was considered to disprove existing studies which state that distortions and inflationary bias occur in the real world. While much attention has been given to the issue in existing studies, no attempt has been made to examine effects of any third factors. Results reveal that inflation is significantly affected by distortionary taxation and that social cohesion leads to price stability in the post Bretton Woods period.

Public Finance Activities, Fiscal Policy, Models, Economic aspects, Inflation (Finance), Monetary policy, Inflation (Economics)

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Central bank independence in another eleven countries

Article Abstract:

The independence of central banks is considered an effective measure against governments from manipulating policy instruments to spur short-term economic growth and employment. Essentially, central banks can only control inflation when they are compelled to subscribe to government manipulation. Central banks in Austria, Denmark, Finland, Hungary, Luxembourg, New Zealand, Norway, Poland, Portugal, Spain and the Czech Republic are independent.

Finland, Austria, Denmark, Laws, regulations and rules, Czech Republic, Poland, Hungary, Spain, Norway, Portugal, New Zealand, Luxembourg

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