The constitutional structure and statutory duties of the central
bank lie at the heart of academic debate about the optimal design
of monetary policy. There is a growing consensus that governments
can achieve lower inflation at a reduced social cost by granting
autonomy to their central banks. Nowhere is the debate more
relevant than in the transition states of eastern Europe, where the
newly established central banks' attempts to stabilise prices have
come into conflict with the social objectives of national
governments. This book, written by a multinational team of
distinguished European academics, explores the changing face of
central banking in eastern Europe in the light of the modern
macroeconomic thinking, providing insights into the design of
monetary policy institutions. The approach is to combine theory
with case studies drawn from Poland, Czech Republic, Romania and
Bulgaria.
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