inflationary bias

inflationary bias The bias towards inflationary measures that is sometimes held to characterize any monetary policy conducted according to the discretion of the policy-making body, as opposed to one governed by fixed pre-announced rules. Most obviously, where monetary policy is set by government a resolve to maintain price stability may be compromised by short-term electoral pressures, such as a desire to increase consumer spending or reduce unemployment. The wish to eliminate inflationary bias has been a major factor in the recent tendency for government to cede responsibility for monetary policy to independent central banks. However, some theorists maintain that the policies of the central bank will still have inflationary bias if they are not constrained by mechanical rules.

• accounting rate of return
• accounting ratio
• accounting records
• accounting reference date
• Accounting Standards Board
• accounting technician
• account management group
• account payee only
• account reconciliation
• accounts
• Accounts Modernization Directive
• accounts payable
• accounts receivable
• accrual
• accrual accounting
• accruals concept
• accrued benefits
• accrued benefits method
• accrued charge
• accrued income scheme
• accumulated depreciation
• accumulated dividend
• accumulated profits
• accumulating shares
• accumulation and maintenance trust