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University of North Georgia

Central Bank Independence

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Optimism In Independence: The European Central Bank After The 2008 Global Financial Crisis, Melissa D. Dixon, Jamie E. Scalera Nov 2016

Optimism In Independence: The European Central Bank After The 2008 Global Financial Crisis, Melissa D. Dixon, Jamie E. Scalera

Papers & Publications: Interdisciplinary Journal of Undergraduate Research

The effects of the 2008 Global Financial Crisis (GFC) on finance and monetary policy continue to be widespread. Now, policymakers are seeking to determine the best approach for managing and resolving the crisis; one such strategy has been to delegate more legitimacy to independent central banks. When will a political leader support or undermine the legitimacy of an independent central bank in the aftermath of an economic crisis? We argue that the central mechanism for determining a change in views of central bank legitimacy is the optimism of the political elites. Therefore, if a government is optimistic about its chances ...