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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... Expenditure 322 1.2 Habit Persistence in Private Expenditure 332 2 Some Small Quantitative Models 336 2.1 The Rotemberg-Woodford Model 336 2.2 More Complex Variants 345 3 Monetary Policy and Investment Dynamics 352 3.1 Investment Demand ...
... 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 expenditure are ...
... expenditure, once one grants the hypothesis of predetermination of spending decisions (just as with pricing decisions). Moreover, the specification assumed matters greatly for one's conclusions about the conduct of policy. If expenditure ...
... expenditure, but rather the current level relative to the expected future level of expenditure, as a result of an Euler equation for the optimal timing of expenditure. Expected future expenditure, relative to expected expenditure even ...
... expenditure affect real activity. I then pause at various points to consider the modifications of the analysis that are required in order to take account of the monetary frictions that evidently exist, given the observation that non ...
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Interest and Prices: Foundations of a Theory of Monetary Policy Michael Woodford No preview available - 2003 |