Applying academic research on monetary policy rules: an exercise in translational economics

Article Abstract:

Translational economics can assist in improving an economy's performance by creating practical applications for academic economics research. Monetary rules based on practical applications of policy research generate more desirable results than those based on discretion, as they are less susceptible to political pressure, uncertainty, and time inconsistencies, and offer greater accountability.

Economics, Beliefs, opinions and attitudes

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Interest rate control in a model of monetary policy

Article Abstract:

The imperfect control of monetary authorities over interest rates directly impacts the real economy. Since monetary policy is based on base money market price control instead of quantities, the variances between official and actual interest rates affect the translation of policy into practice. Real market activity remains distinct from administered directives.

Economic aspects, Interest rates

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A NOTE ON THE ROLE OF AMBIGUITY IN A MONETARY POLICY GAME(*)

Article Abstract:

Minimizing monetary variability is not necessarily the optimal approach. The incentive to inflate is less when money variance is positive, and this condition may improve welfare. The equilibrium condition is not socially efficient. Because of costs associated with money growth that is highly volatile, however, the optimal monetary variance is finite.

Inflation (Finance), Inflation (Economics)

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