Three essays on central banking and credibility

Abstract

This dissertation contains three essays related to the modern trends in central banking and its credibility. The first essay focuses on the political-economy aspects of the inflationary bias, arguing in favour of preserving a high degree of monetary policy independence. The second essay discusses what factors should influence the choice between a floating exchange rate and adopting a fixed exchange rate as simple policy rule, trying to import credibility and monetary stability from abroad. The last essay discusses some aspects of the central bank's financial independence and its inter-relationships with credibility.