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.
Publication Name: Manchester School
Subject: Economics
ISSN: 1463-6786
Year: 1998
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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.
Publication Name: Manchester School
Subject: Economics
ISSN: 1463-6786
Year: 1998
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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.
Publication Name: Manchester School
Subject: Economics
ISSN: 1463-6786
Year: 1998
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