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Series on Central Banking 04: Monetary Policy: Rules and Transmission Mechanism

Series on Central Banking 04: Monetary Policy: Rules and Transmission Mechanism

Monetary policy must consider the bi­directional 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 trans­mission 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.

Language: English

Edited by: Norman Loayza y Klaus Schmidt-Hebbel

Published: August 2002

$15.000

Available for free in digital format in the Digital Repository and Institutional Website

Work belonging to the Collection of Paintings of the Central Bank of Chile: "Paisaje Marino" by Luis Strozzi (Oil on canvas, 49 x 57,5 cm.)