Monetary policy: rules and transmission mechanisms
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Date
2002
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Banco Central de Chile
Abstract
Description
Monetary policy must consider the biÂdirectional relationship between the economy and its central bank. It should therefore address two essential questions: first, how changes in the economy induce a reaction by the central bank, and second, how these policy changes are in turn transmitted to the economy. The essays in this volume present and discuss some recent advances in research on monetary policy rules and monetary transÂmission mechanisms. In addressing these issues, the papers take a variety of approaches, from case studies on developed and emerging economies to cross-country empirical analyses, and from theoretical models to historical narrative. Together they clarify some key issues of monetary policy, such as the tradeoff between output and inflation volatilities, the importance of central bank credibility, the additional complexities of policymaking in open economies, and the limits that uncertainty places on policy decisions.
Keywords
POLĂTICA MONETARIA, BANCOS CENTRALES, CONTROL DE PRECIOS