How strong is the case for a populist central banker? A note

The Naive Central Banker

“…Clarida, Galí, & Gertler, 1999;Damjanovic, Damjanovic, & Nolan, 2008;Sauer, 2010). However, by analysing the behavior of a specific type of central banker, our results are more close to those of Guzzo & Velasco (1999);Jerger (2002); Lippi (2002), which found there is a case for a populist central banker, and Herrendorf & Lockwood (1997); Rogoff (1985), which focus on the behavior of the conservative central banker. A good survey on the inflationary bias problem may be found in Walsh (2010).…”

“…Yet, this extension may not be so direct, given the non-smoothness of the loss function, but it would add realism on the monetary policy analysis and would make the results closer to the state of the art in monetary theory. Finally, our results would be enriched if we added issues concerning to labor market, for example, like those studies of Guzzo & Velasco (1999);Jerger (2002);Lippi (2002).…”

Monetary Institutions, Monopolistic Competition, Unionized Labor Markets and Economic Performance*

“…6 6 Jerger (2002) considers the case in which the CB and unions move simultaneously rather than sequentially. Since monetary policy is adjusted more frequently than nominal contracts, our assumption that unions move first appears to be more plausible. …”

A Union‐bashing Model of Inflation Targeting

“…Table 1 shows collective bargaining coverage for the private and public sector in selected European countries in 2001 (%): 1 Earlier literature, by focusing on inflation-averse unions, obtained the opposite result. See Skott (1997), Jensen (1997), Cukierman and Lippi (1999), Velasco (1999, 2002), Lippi (2002) and Jerger (2002). For a survey of both types of approaches, see Cukierman (2002).…”