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Central Bank Independence and the Short-Run Output-Inflation Trade-off in the European Community

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Monetary and Fiscal Policy in an Integrated Europe

Part of the book series: European and Transatlantic Studies ((EUROPEANSTUDIES))

Abstract

The member countries of the European Community (EC) have established a process for moving toward a common monetary policy conducted by a single European Central Bank (ECB). The structure of this new policy institution, modeled after the German Bundesbank, has been specifically designed to guarantee it a high degree of independence from political influences. Empirical evidence linking independent central banks with low average inflation played an important role in giving impetus to the creation of a common central bank with substantial political independence.2

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© 1995 Springer-Verlag Berlin Heidelberg

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Walsh, C.E. (1995). Central Bank Independence and the Short-Run Output-Inflation Trade-off in the European Community. In: Eichengreen, B., Frieden, J., von Hagen, J. (eds) Monetary and Fiscal Policy in an Integrated Europe. European and Transatlantic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-79817-7_2

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  • DOI: https://doi.org/10.1007/978-3-642-79817-7_2

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-79819-1

  • Online ISBN: 978-3-642-79817-7

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