The appropriate design of monetary policy in integrated financial markets is one of the most challenging areas for central banks. One hot topic is whether the rise in liquidity in recent years has contributed to the formation of price bubbles in asset markets. If strong linkages exist, the...

The search for a relationship between central bank laws and monetary policy outcomes, which began three decades ago, is part of a larger enterprise to discover the monetary policy framework that delivers the best macroeconomic performance. A 'monetary policy framework' is a set of institutional...

The monetary economy has properties that cannot be analyzed using the tools of today's dynamic general equilibrium analysis. Keynes's economics, far from being an aberration in the otherwise orderly evolution of modern macroeconomics from Adam Smith's ideas about the invisible hand, was a major...