Interest and Prices: Foundations of a Theory of Monetary PolicyWith the collapse of the Bretton Woods system, any pretense of a connection of the world's currencies to any real commodity has been abandoned. Yet since the 1980s, most central banks have abandoned money-growth targets as practical guidelines for monetary policy as well. How then can pure "fiat" currencies be managed so as to create confidence in the stability of national units of account? |
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... aggregate nominal expenditure can be forecast in advance. Yet, as shown Chapter 3, VAR evidence on the effects of identified monetary policy shocks is quite inconsistent with these predictions. Rather, these effects on aggregate nominal ...
... aggregate demand, since the coefficients on lagged rates are found to be more signifi- cant than those on a current interest rate in the case of a regression seeking to explain aggregate real expenditure in terms of observable variables ...
... aggregate supply of clearing balances might be ; frequent quantity adjustments accordingly become less important . Woodford ( 2001c ) describes a simple model of overnight interest - rate determination under such a system . In this ...
... aggregate-supply relations that result from delays in the adjustment of prices or wages, in order to select ... aggregate-demand determination, that al- low the model to better match econometric evidence regarding the effects of monetary ...
... aggregate value at the beginning of period t + 1 of government bonds in the hands of the public at the end of period t . ( In general , it would not suffice for bond- market clearing to require that B = B , where B denotes the market ...
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Interest and Prices: Foundations of a Theory of Monetary Policy Michael Woodford No preview available - 2003 |