Central Bank Strength (Stella)

Central bank financial strength, policy constraints and inflation by Peter Stella, published by IMF. This paper argues the importance of central bank financial strength for policy outcomes increases exponentially as central bank finances become weaker or policy commitments become more ambitious. More generally, the financial strength of an independent and credible central bank must be commensurate with its policy tasks and the risks it faces. http://migre.me/15xaQ