Repositorio
Price stability and monetary policy: A proposal of a non-active policy rule
Título
Price stability and monetary policy: A proposal of a non-active policy rule
Código de publicación
- AD-00057
Autores/as
- Castaneda, J. & Wood, G.E.
Clave
- Artículo de investigación
Colaboradores/as
Claves o descriptores
Descripción
- A new type of monetary policy rule designed to achieve both price and output stability has increasingly been recommended during the last business cycle expansion, prior to the 2007 crisis. This type of rule implies “active” reaction functions. Based on the new Keynesian approach to monetary economics, these rules prescribe an active response by the central bank in the face of any shock that shifts prices or output from target, which leads to excessive money creation. Here, a less active type of reaction function is proposed; one in which price stability is the long run target, but permitting prices to respond to changes originating in real disturbances. It is argued that the resulting policy delivers outcomes preferable to currently popular rules.
Localización
Revista | libro
- Cuadernos de Economía, 34(95), 62–72.
Idioma
- Inglés
Editor
- Elsevier
Año de publicación
- 2011
Formato
Identificador (ISBN/ISSN)
- 0210-0266
DOI o URI/URL
- DOI: 10.1016/S0210-0266(11)70007-3
Derechos
- Abiertos
Fichero
- Disponible