Abstract

POSADA P, Carlos Esteban. LA INFLACIÓN Y EL BANCO CENTRAL: ECONOMÍA DE UN EMISOR INDEPENDIENTE. Cuad. Econ. [online]. 2002, vol.21, n.36, pp.77-98. ISSN 0121-4772.

In this paper I propose a microeconomic based theoretical relation between a private monopolist bank and the optimal intlation rateo The proposed relation is the basis to establish a sutficient condition for the central bank independence. The core of this paper is a model showing the conditions required to equalize the optimal social and private rates of inflation. Notwithstanding the very simple nature of the argument, we can deduce from it some propositions of "Constitutional Economics".

Keywords : Independency of the Central Bank; monopolistic issuer; profit maximization; optimal inflation; social cost of inflation.

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