We use a micro-founded macroeconometric modeling framework to investigate the design of monetary policy when the central bank faces uncertainty about the true structure of the economy. We apply Bayesian methods to estimate the parameters of the baseline specification using postwar U.S. data and...

Remarks at the Central Bank Independence Conference—Progress and Challenges in Mexico, Mexico City, Mexico.

The monetary policy, as part of the economic policy, represents an absolute prerogative of the central bank. Although all monetary policy instruments are identical in most Central and Eastern European states, the manner and the frequency with which they are used differs from country to country....

Derivatives are an important part of the process of financial innovation that swept global markets. The growth of derivatives has so many implications on the economy in general and for the environment in which the monetary policy operates. This paper examines the impact that presence of...

On the background of the current international financial crisis, the central banks of major developed countries took unprecedented action aimed at restoring the confidence in financial systems and at ensuring the normal functioning of the monetary policy transmission mechanism on the real...

In the early 1990 New Zealand passed the Reserve Bank of New Zealand Act, which gave the Reserve Bank the price stability role and independence “to achieve and maintain price stability”, which became known later as inflation targeting (IT). Since then, IT gained reputation, becoming the...

Over the past few decades, many financial innovations have ensured a more efficient allocation of resources, being thus considered an engine of economic growth, but at the same time, their rapid development complicated the environment in which central bank implements its policies. In this...

An economy like that of China started out a lot of controversies and a lot of analysis. Recently, the monetary policy led by China gave birth to a series of disturbing questions, as follows: for how long can the fixed exchange rate be sustained? what will be the consequences of the continuous...

Global economy was significantly affected by the global financial crisis and especially the budget balance of all countries. Sovereign debts cause the lack of stability and the shift of monetary policy. This paper is about the recent evolutions in euro zone and its perspectives. The Euro break...

This paper aims to show the different approaches of monetary policies from a Keynesian and a Monetarist perspective. We will present a critical view about money and monetary theories by comparing two of the most important and influential schools of economic thinking: Keynesian paradigm and...