Lessons for monetary policy: what should the consensus be?
This paper outlines important lessons for monetary policy. In particular, the role of inflation targeting, which was much acclaimed prior to the financial crisis and since then has not lost much of its endorsement, is critically reviewed. Ignoring the relation between monetary policy and asset prices, as is the case in this monetary policy approach, can lead to financial instability. In contrast, giving, inter alia, monetary factors a role in central banks' policy decisions, as is done in the ECB's encompassing approach, helps prevent these potentially harmful side effects and thus allows for ...
Panel discussion: inflation targeting
Central bank perspectives on stabilization policy
For some time, the use of monetary and fiscal policies to smooth business cycle fluctuations has taken a back seat to longer term objectives of restoring price stability and fiscal balance. More recently, however, weaker economic performance in some of the world?s economies, most notably in Japan and the United States, has led to renewed interest in the use of short-run stabilization policy. ; This year the bank?s economic policy symposium, ?Rethinking Stabilization Policy,? explored the potential scope for stabilization policy in this new environment. The papers presented at the symposium ...
Why did the Great Inflation not happen in Germany?
The housing finance revolution: general discussion
Communication, transparency, accountability: monetary policy in the twenty-first century
This article is a revised English translation of the Thunen Lecture, given at the Annual Congress of the Verein fur Socialpolitik, September 29, 2004, in Dresden, Germany.
Monetary policy in a changing economic environment
Housing is the business cycle: general discussion