Independence, conservatism, and beyond: Monetary policy, central bank governance and central banker preferences (1981–2021)

Masciandaro, Donato

doi:10.1016/j.jimonfin.2021.102579

Cited by 11 publications

(1 citation statement)

References 198 publications

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“…First, if a central bank is independent of CEOs' appointments or dismissals and policy‐making, the whole country may face the moral hazard of the promises made by the central bank. Central bankers are still humans who can be irrational in policy‐making (Masciandaro, 2022). An independent central bank may promise inflation targeting or a relatively stable monetary policy and financial market interventions.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Which dimensions of culture matter for central bank independence? International evidence

Fang

2024

Int Rev Finance

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In this paper, we examine the relationship between Hofstede national cultures and de jure central bank independence. We propose theoretical hypotheses to explain how cultural dimensions determine central bank independence and test these hypotheses using an international dataset. We find that two cultural dimensions, namely, individualism and uncertainty avoidance, are significantly related to central bank independence. Central bank independence is higher in collectivistic and uncertainty avoidance countries. We further reveal that these cultural dimensions affect central bank independence in different ways. Individualism and uncertainty avoidance are related to independence in policy formulation and limitations on lending to governments. Although power distance and masculinity are insignificantly related to total central bank independence, they affect independence in objectives, policy formulation and limitation on lending to governments. Our results are robust through a series of checks.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Which dimensions of culture matter for central bank independence? International evidence

Fang

2024

Int Rev Finance

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Flexible Monetary Policy Rules from the Great Moderation to the New Normal Times (1993–2023): A Forward-Looking Review

Masciandaro

2023

Contributions to Economics

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Literacy and Financial Education: Private Providers, Public Certification and Political Preferences

Guerini,

Masciandaro,

Papini

2024

Ital Econ J

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Financial education can influence the level of financial literacy. In many countries public authorities implement financial education policy by means of ex ante certification of both private and public providers of education activities. This article uses political economy, educational marketing and text analysis as complementary tools to offer a positive analysis of such setting. Being financial education a credence good and given the key assumption that financial literacy is a country state–contingent endowment that deteriorates, as a consequence of innovation, the third-party certification can be considered as a strategic governance solution. Yet, when a public agency acts as third-party certifier, political and bureaucratic incentives shape its action. In particular, political activism in financial education can be motivated by financial instability worries. Such theoretical relationship is empirically confirmed applying text analyses, and using financial education narrative as a proxy for activism both for the politicians of the European Parliament and the bureaucrats of the ECB in the period 1997–2024.

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Independence, conservatism, and beyond: Monetary policy, central bank governance and central banker preferences (1981–2021)

Cited by 11 publications

References 198 publications

Which dimensions of culture matter for central bank independence? International evidence

Which dimensions of culture matter for central bank independence? International evidence

Flexible Monetary Policy Rules from the Great Moderation to the New Normal Times (1993–2023): A Forward-Looking Review

Literacy and Financial Education: Private Providers, Public Certification and Political Preferences

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