Elham Mafi-Kreft

Areas of Expertise

International Financial Institutions, Monetary Policy, European Monetary Union

Academic Degrees

• BS, West Virginia University, 1999
• MA, West Virginia University, 2002
• PhD, West Virginia University, 2003

Professional Experience

• Indiana University, Kelley School of Business, Clinical Assistant Professor, 2006-Present
• Rose-Hulman Institute of Technology, Assistant Professor of Economics, 2003-2006
• University of Bonn-Germany, Visiting Researcher, 2004
• West Virginia University, Graduate Student Instructor, 1999-2003

Selected Publications

• Mafi-Kreft, Elham and Russell S. Sobel (2006), “Does a Less Active Central Bank Lead to Greater Economic Stability? Evidence from the European Monetary Union,” The Cato Journal, Vol. 26, No. 1, Winter.

Abstract Substantial disagreement exists among economists about the degree to which central banks should pursue discretionary stabilization policy. Activists believe that central banks can promote greater macroeconomic stability through the use of discretionary policy, while nonactivists (such as the monetarists) do not. In particular, monetarists believe that lags andtiming problems will result in even the best-intentioned discretionary policy actually resulting in less (rather than more) macroeconomic stability. The formation of the European Monetary Union provides a unique opportunity to test whether a shift to a less active central bank has resulted in more or less macroeconomic stability for these countries.

• Mafi-Kreft, Elham and Steven F. Kreft (2006), “Importing Credible Monetary Policy: A Way for Transition Economies to Fight Inflation?” Economics Letters, v 92, No.1, July.

Abstract In the 1990s, transition economies were rearranging their monetary regimes. This paper compares the chosen regimes based on the level of discretionary power and the ability to control inflation. Results show that non-discretionary regimes produce lower and more stable inflation.