The Inflation Bias When the Central Bank Targets, the Natural Rate of Unemployment

This paper studies the proposition that an inflation bias can arise in a setup where a central banker with asymmetric preferences targets the natural unemployment rate. Preferences are asymmetric in the sense that positive unemployment deviations from the natural rate are weighted more (or less) severely than negative deviations in the central banker's loss function. The bias is proportional to the conditional variance of unemployment. The time-series predictions of the model are evaluated using data from G7 countries. Econometric estimates support the prediction that the conditional variance of unemployment and the rate of inflation are positively related.

Depoliticization, instrumentalization and legitimacy of Czech development cooperation: A case of imposed altruism?

This paper draws on James Ferguson’s concept of ‘anti-politics machine’ and Pierre Bourdieu’s concept of illusio to explore the nature of the international development cooperation programmes financed by the Czech government. It argues that its character as an ‘anti-politics machine’ turns development into a highly technical issue and dismisses essential political questions of global equity and policy coherence from the public debate. Moreover, the actors in the field of development cooperation are held in an illusio: they are required to appear as altruistic, which obscures their particular interests. This instrumentalization of development aid contributes to further isolation of the Czech development constituency and raises fundamental questions for the democratic legitimacy of development cooperation.