In recent years, a number of countries have changed their central banking institutions. Often these reforms involve granting long terms of office to central bankers. This threatens to limit the extent to which the central bank can be held accountability. Dismissal rules can help ensure accountability, and, in the presence of inßation shocks, the socially optimal commitment policy is supported b...

Electronic distribution channels provide alternatives for faster delivery of banking services to a wider range of customers. E-channels have gained increasing popularity and have attracted the attention of both academics and practitioners. This paper aims to collect bank employees’ perceptions of the potential benefits and risks associated with electronic banking in Pakistan. The outcomes may h...

We implement optimal economic outcomes at the lowest social cost by combining reputation and contracting mechanisms to overcome the time-inconsistency problem of monetary policy associated with an inflation bias. We characterize the conditions under which the reputation force alone induces a central bank to behave in a socially optimal way. When these conditions fail, an incentive contract is i...

Interest in the measurement of infl ation has increased signifi cantly in recent years for a number of reasons. First, infl ation rates have fallen signifi cantly since the early 1980s. Second, many central banks have adopted infl ation targets. The combination of these two factors has increased the importance of accurate measurement. Third, rapid quality improvements, particularly in the infor...

We implement optimal economic outcomes at the lowest social cost by combining reputation and contracting mechanisms to overcome the time-inconsistency problem of monetary policy associated with an inflation bias. We characterize the condition under which the reputation force alone induces a central bank to behave in a socially optimal way. When this condition fails, an incentive contract is inv...

Abstract Substantial remunerative benefits accrue to managers of new hedge funds launched after the implementation Volcker Rule if their previous employer is a large US bank. After rule, ex‐bankers' charge higher management fees and receive more flows as compared with other established during same period. This phenomenon related changes in investor perception distribution skills fund rather tha...