This chapter reviews the theory of optimal monetary stabilization policy in New Keynesian models, with particular emphasis on developments since the treatment of this topic in Woodford (2003). The primary emphasis of the chapter is on methods of analysis that are useful in this area, rather than...

I can still stop this ... -- Prelude. Main Street ; In the groves of academe ; Governor ; In the maestro's orchestra ; The subprime spark ; Rookie season -- The crisis. First tremors, first response ; One step forward ; The end of the beginning ; Bear Stearns : before Asia opens ; Fannie and...

"I consider some of the leading arguments for assigning an important role to tracking the growth of monetary aggregates when making decisions about monetary policy. First, I consider whether ignoring money means returning to the conceptual framework that allowed the high inflation of the 1970s....