Imperfect Knowledge and Monetary Policy

ISBN-13: 9780521854863 / Angielski / Twarda / 2006 / 152 str.

Frankfurt) Vítor Gaspar (European Central Bank; Frankfurt) Otmar Issing (European Central Bank; Frankfurt) Oreste Tristani (European Central Bank

Opis

Based on lectures given as part of The Stone Lectures in Economics, this book discusses the problem of formulating monetary policy in practice, under the uncertain circumstances which characterize the real world. How should central banks set monetary policy? In which way should they take uncertainty into account when designing a monetary policy strategy? Should they respond to shocks aggressively or cautiously? These questions are discussed both with reference to the experience of the Bundesbank and of the European Central Bank and in relation to a simple stylized economic model.

Recenzje

' … the book is commendable in its attempt to explain, through examples, the actual application of monetary policy and how real problems are tackled.' De Economist

Spis treści

Acknowledgments; Introduction; Outline of the two lectures; First lecture: Monetary Policy in Uncharted Territory. 1. Introduction; 2. Uncharted territory: unique historical events; 3. Achieving price stability; 4. Avoiding excess volatility in inflation, output and the interest rate; 5. Pragmatic monetarism: The Bundesbank; 6. A stability-oriented strategy: the ECB; 7. Conclusions; Second lecture: Imperfect Knowledge, Learning and Conservatism. 1. Introduction; 2. Time inconsistency, cost-push shocks and Rogoff's conservatism; 3. Empirical output gap uncertainty; 4. Output gap uncertainty, learning and conservatism; 5. Different degrees of CB's knowledge and information; 6. Conclusions; References.