Template-type: ReDIF-Article 1.0 Author-Name: Gustavo Piga Title: Sull'irrilevanza dell'indipendenza delle Banche centrali Abstract: Sull'irrilevanza dell'indipendenza delle Banche centrali (di Gustavo Piga) - ABSTRACT: In this paper we take another look at the literature on central bank independence. We show that the representative-agent approach to monetary policy is seriously flawed and should not be trusted upon to derive institutional solutions to the inflation-ary-bias. We then show that the political approach to monetary policy is definitely su-perior in accounting for the inflationary bias in society and that this has strong impli-cations for the set-up of institutional arrangements, like central-bank independence, and the role of contractual arrangements, like indexation. Central bank independence, if appropriately modeled, is shown to be incapable of reducing inflationary pressures in society. We then identify some issues in the theory of central banking that have not been clearly solved and we offer some intuition as to the way they could be studied. We conclude by showing some potentially worrisome implications for the future of the European Monetary Union. Classification-JEL: Keywords: Note: Pages: Volume: 2001/74 Year: 2001 Issue:74 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=16970&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2001-074001 Number: 1 Template-type: ReDIF-Article 1.0 Author-Name: Pompeo Della Posta Title: Dalla credibilit? alla speculazione: la crisi del 1992-93 del Sistema monetario europeo Abstract: Dalla credibilit? alla speculazione: la crisi del 1992-93 del Sistema monetario europeo (di Pompeo Della Posta) - ABSTRACT: We consider the events that from the creation of the European Monetary System (EMS) lead to the 1992-93 crisis. The adoption of the Single European Act imposed the liberalisation of capi-tal movements. In order to avoid the risks implied by such a liberalisation, the Basle-Nyborg Agreement was signed, with which unlimited support was promised to the countries subject to speculative attacks. After a critical analysis of the Delors Report and of the Maastricht Treaty, we try to identify the possible causes of the 1992-93 crisis. The different explanations seem to be re-conciled when comparing the future, expected and discounted benefits with the present costs im-plied by the adhesion to the EMS. Such an approach however, neglects the role played by the availability of foreign reserves and ignores that, independently from any borrowing costs, market imperfections may make unavailable the foreign reserves necessary to defend the exchange rate. Classification-JEL: Keywords: Note: Pages: Volume: 2001/74 Year: 2001 Issue:74 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=16971&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2001-074002 Number: 2 Template-type: ReDIF-Article 1.0 Author-Name: Luciano Fanti Title: Innovazione finanziaria e domanda di moneta in un modello LS-LM dinamico con accumulazione Abstract: Innovazione finanziaria e domanda di moneta in un modello LS-LM dinamico con accumulazione (di Luciano Fanti) - ABSTRACT: This paper develops an IS-LM dynamic model with capital accumulation and in-vestigates the effects of two different regimes of demand for money, the one mainly depending on the speculative motive, the other mainly depending on the transaction motive, as sequentially emerged in the recent history of the Italian economy according to some empirical papers (i.e. the econometric model of Bank of Italy). The main re-sults are: 1) the monetary policy in terms of a fixed supply of money obviously in-fluences the income and the capital levels, but it is ineffective about the stability; 2) when the rate of interest elasticity of the money demand is relatively high an unstable limit cycle can be triggered, which can represent a "corridor stability" in the Lejion-hufvud?s sense; 3) the financial innovation which can explain the emergence of the "transaction" regime may favour the economic stability, provided that the goods mar-ket adjusts in a sufficiently fast way. Classification-JEL: Keywords: Note: Pages: Volume: 2001/74 Year: 2001 Issue:74 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=16972&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2001-074003 Number: 3 Template-type: ReDIF-Article 1.0 Author-Name: Carlo Altavilla Title: Evaluating Monetary Policy Strategies: The Case of Italy Abstract: Evaluating Monetary Policy Strategies: The Case of Italy (di Carlo Altavilla) - ABSTRACT: The paper analyses the monetary strategy of the Bank of Italy. The problem the Bank of Italy has faced in setting a monetary policy rule is analysed starting from the monetary transmission mechanisms and from the timing and magnitude of monetary shocks. The econometric methodology applied is the Structural Vector Autoregression. Once the structural model has been identified the study focuses on the performance of different monetary policy rules thought to be used as a guideline in practical policy-making. In this respect, different rules are estimated using alternative econometrics techniques. A comparative analysis, based on the ability of the rules in capturing the historical central bank?s behaviour and on the volatility of output, inflation and interest rate changes that they imply, is performed. The results suggest that the simple rules per-form quite well and that the gains obtained from adopting an optimal control-based rule are not so large. Moreover, the addition of a forward-looking dimension as well as an interest rate smoothing term in the reaction function seems to improve the performance of the rules. Classification-JEL: Keywords: Note: Pages: Volume: 2001/74 Year: 2001 Issue:74 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=16973&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2001-074004 Number: 4 Template-type: ReDIF-Article 1.0 Author-Name: Alberto Iozzi Title: Who Gains from Universal Service Obligations? A Welfare Analysis of the Rule "One Price for Everywhere" Abstract: Who Gains from Universal Service Obligations? A Welfare Analysis of the Rule ?One Price for Everywhere? (di Alberto Iozzi) - ABSTRACT: This paper provides an analysis of the welfare effects of imposing the provision of a universal service at a uniform price on regulated network utilities. The vehicle of the analysis is a duopoly model where firms compete in a spatial market and where pric-ing constraints are imposed only on one of the firms. The structure of the model cap-tures the imperfectly competitive features of the markets where uniform pricing con-straints are imposed and the asymmetric nature of the regulatory framework typical of these industries. The main results are the following: i) the introduction of uniform pricing constraints may reduce the aggregate social welfare with respect to the totally unregulated market; ii) there are conditions under which the unregulated market not only gives a higher aggregate welfare but also ensures that all the consumers have ac-cess to the good, and iii) unless the regulatory arrangements also include a constraint on the price level, the unregulated market may provide to consumers distantly located from the firms a level of welfare higher than when universal service obligations are imposed. Classification-JEL: Keywords: Note: Pages: Volume: 2001/74 Year: 2001 Issue:74 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=16974&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2001-074005 Number: 5