The ultimate determinants of central bank independence



27


F = 2[(1 ÷e)(1 )2÷ χ]3 u
du      <⅛1 -β )4(1+<≈)3


(B.3)


(B.3) is positive.


(6) Demonstration that dF > 0
dX

The first derivative of F with respect to χ is given by


3[(1+ε)(1 ) + χ]2U2
σ2∕1 -β )4(1+ε)3


(B.4)


It can easily be checked that (B.4) is positive.


F

(7) Demonstration that < 0.
2


The first derivative of F with respect to σμ2 is given by


F _ -[(1 +ε)(1 )2 + χ]3U2


∂σ2μ        [σ2μ(1 -β )2]2(1 + ε)3


(B.5)


(B.5) is negative.


F

(8) Demonstration that           > 0.

The first derivative of F with respect to (1-β)-1 is given by


∂F     = 2U2[2χ-(1+ε)(1 -β )2][(1 +ɛ)ɑ-β )2÷ χ]2

d(1 -β )"1                   σ2(1 -β )3(1+ε)3


(B.6)


(B.6) is positive if χ (1+g)(1 β) .




More intriguing information

1. Ahorro y crecimiento: alguna evidencia para la economía argentina, 1970-2004
2. The name is absent
3. Measuring and Testing Advertising-Induced Rotation in the Demand Curve
4. FISCAL CONSOLIDATION AND DECENTRALISATION: A TALE OF TWO TIERS
5. The name is absent
6. Optimal Taxation of Capital Income in Models with Endogenous Fertility
7. Initial Public Offerings and Venture Capital in Germany
8. Categorial Grammar and Discourse
9. A Dynamic Model of Conflict and Cooperation
10. Road pricing and (re)location decisions households