Monetary Policy Strategy : How Did We Get Here? / Frederic S. Mishkin.

Format:

Book

Author/Creator:

Mishkin, Frederic S., author.

Series:

Working Paper Series (National Bureau of Economic Research) ; no. w12515.

NBER working paper series ; no. w12515

Language:

English

Subjects (All):

Monetary policy.

Banks and banking.

Physical Description:

1 online resource (44 pages) : illustrations (black and white).

Place of Publication:

Cambridge, Massachusetts : National Bureau of Economic Research, 2006.

Summary:

This paper, which is the introductory chapter in my book, "Monetary Policy Strategy", forthcoming from MIT Press, outlines how thinking in academia and central banks about monetary policy strategy has evolved over time. It shows that six ideas that are now accepted by monetary authorities and governments in almost all countries of the world have led to improved monetary performance: 1 there is no long-run tradeoff between output (employment) and inflation; 2 expectations are critical to monetary policy outcomes; 3 inflation has high costs; 4 monetary policy is subject to the time-inconsistency problem; 5 central bank independence helps improve the efficacy of monetary policy; and 6 a strong nominal anchor is the key to producing good monetary policy outcomes.

Notes:

Description based on publisher supplied metadata and other sources.