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Optimal Taxation by the Monetary Authority

Walsh, Carl E. - 2021

Reserve requirements imposed against bank deposits, nominal interest payments on bank reserves (or on base money), and inflation can all be viewed as generating tax effects. Any analysis of optimal monetary policy in a steady-state equilibrium needs to consider the simultaneous choice of all the...

Persistent link: https://www.econbiz.de/10013235318

Rethinking the Role of NAIRU in Monetary Policy : Implications of Model Formulation and Uncertainty

Estrella, Arturo; Mishkin, Frederic S. - 2021

In this paper we rethink the NAIRU concept and examine whether it might have a useful role in monetary policy. We argue that it can, but success depends critically on defining NAIRU as a short-run concept and distinguishing it from a long-run concept like the natural rate of unemployment. We...

Persistent link: https://www.econbiz.de/10013231562

Monetary Policy, Bond Risk Premia, and the Economy

Ireland, Peter N. - 2015

attributable to changing expected future short rates versus risk premia. The estimated model highlights a broad range of channels … through which monetary policy affects risk premia and the economy, risk premia affect monetary policy and the economy, and the … economy affects monetary policy and risk premia …

Persistent link: https://www.econbiz.de/10013015094

Circumventing the Zero Lower Bound with Monetary Policy Rules Based on Money

Belongia, Michael T. - 2017

Discussions of monetary policy rules after the 2007-2009 recession highlight the potential ineffectiveness of a central bank's actions when the short-term interest rate under its control is limited by the zero lower bound. This perspective assumes, in a manner consistent with the canonical New...

Persistent link: https://www.econbiz.de/10012963170

Is There a Role for Monetary Aggregates in the Conduct of Monetary Policy?

Estrella, Arturo - 2006

We examine the potential policy role of monetary aggregates by attempting to use them as effectively as possible in the analysis of empirical relationships. We consider three possible roles: as information variables, as indicators of policy actions and as instruments in a policy rule. These...

Persistent link: https://www.econbiz.de/10012783973

Will Monetary Policy Become More of a Science?

Mishkin, Frederic S. - 2010

This paper reviews the progress that the science of monetary policy has made over recent decades. This progress has significantly expanded the degree to which the practice of monetary policy reflects the application of a core set of quot;scientific principlesquot;. However, there remains, and...

Persistent link: https://www.econbiz.de/10012759738

Exchange Rate Pass-Through and Monetary Policy

Mishkin, Frederic S. - 2008

This paper discusses what recent economic research tells us about exchange rate pass-through and what this suggests for the control of monetary policy. It first focuses on exchange rate pass-through from a macroeconomic perspective and then examines the microeconomic evidence. In light of this...

Persistent link: https://www.econbiz.de/10012771964

Interest Rates and Money in the Measurement of Monetary Policy

Belongia, Michael T. - 2014

Over the last twenty-five years, a set of influential studies has placed interest rates at the heart of analyses that interpret and evaluate monetary policies. In light of this work, the Federal Reserve's recent policy of "quantitative easing," with its goal of affecting the supply of liquid...

Persistent link: https://www.econbiz.de/10013053840

Implementing the Friedman Rule

Ireland, Peter N. - 2021

In cash-in-advance models, necessary and sufficient conditions for the existence of an equilibrium with zero nominal interest rates and Pareto optimal allocations place restrictions mainly on the very long-run, or asymptotic, behavior of the money supply. When these asymptotic conditions are...

Persistent link: https://www.econbiz.de/10013216843

Inflation Targeting : A New Framework for Monetary Policy?

Bernanke, Ben; Mishkin, Frederic S. - 2021

In recent years a number of industrialized countries have adopted a strategy for monetary policy known as `inflation targeting.' We describe how this approach has been implemented in practice and argue that it is best understood as a broad framework for policy, which allows the central bank...

Persistent link: https://www.econbiz.de/10013216857