Issues concerning nominal anchors for monetary policy / Robert Flood, Michael Mussa.

Format:

Book

Author/Creator:

Flood, Robert P., author.

Mussa, Michael, author.

Series:

Working Paper Series (National Bureau of Economic Research) ; Number w4850.

Working Paper Series (National Bureau of Economic Research) ; Number w4850

Language:

English

Subjects (All):

Monetary policy--United States.

Monetary policy.

Inflation (Finance).

Physical Description:

1 online resource (32 pages) : illustrations.

Place of Publication:

Cambridge, Massachusetts : National Bureau of Economic Research, 1994.

Summary:

This paper presents a selective survey of issues relevant to the choice of nominal anchors for monetary policy. Section I reviews long price-level histories for the United Kingdom and United States, which reveal that the price level behaved very differently following WWII in these countries than it had done in previous post-war experiences. In particular following WWII the responsibilities of monetary policy expanded to encompass a business-cycle stabilization role and the nominal anchor shifted from the fixed anchor or price-level stability to the moving anchor of inflation-rate stability. The remaining sections of the paper review, in the context of a variety of models, some of the considerations that are relevant to setting the average inflation rate in countries without a fixed nominal anchor.

Notes:

Description based on publisher supplied metadata and other sources.