Monetary Economics

  1. Modern Monetary Policy in Practice
    1. Inflation Targeting
      1. Elements of Inflation Targeting
        1. Explicit Targets
          1. Numerical Targets
            1. Target Ranges
              1. Point vs. Range Targets
              2. Transparency and Communication
                1. Inflation Reports
                  1. Forward Guidance
                    1. Press Conferences
                    2. Accountability
                      1. Parliamentary Hearings
                        1. Performance Evaluation
                          1. Escape Clauses
                        2. Advantages and Disadvantages
                          1. Policy Predictability
                            1. Reduced Uncertainty
                              1. Anchored Expectations
                              2. Flexibility vs. Rigidity
                                1. Flexible Inflation Targeting
                                  1. Output Stabilization
                                    1. Financial Stability Considerations
                                    2. Democratic Legitimacy
                                      1. Public Understanding
                                        1. Political Support
                                      2. Country Experiences
                                        1. Advanced Economies
                                          1. New Zealand (Pioneer)
                                            1. United Kingdom
                                              1. Canada
                                                1. Australia
                                                  1. Sweden
                                                  2. Emerging Markets
                                                    1. Brazil
                                                      1. Mexico
                                                        1. South Africa
                                                          1. Turkey
                                                          2. Lessons Learned
                                                            1. Implementation Challenges
                                                              1. Success Factors
                                                          3. The Debate over Monetary Policy Strategy
                                                            1. The "Just Do It" Approach
                                                              1. Federal Reserve Strategy
                                                                1. Discretionary Decision-Making
                                                                  1. Meeting-by-Meeting Decisions
                                                                    1. Data-Dependent Policy
                                                                    2. Criticisms and Defenses
                                                                      1. Lack of Transparency
                                                                        1. Flexibility Benefits
                                                                      2. Nominal GDP Targeting
                                                                        1. Rationale and Implementation
                                                                          1. Level vs. Growth Rate Targeting
                                                                            1. Automatic Stabilization
                                                                            2. Comparison with Inflation Targeting
                                                                              1. Supply Shock Responses
                                                                                1. Output Stabilization
                                                                                2. Practical Challenges
                                                                                  1. Data Availability
                                                                                    1. Measurement Issues
                                                                                  2. Price-Level Targeting
                                                                                    1. Long-Term Price Stability
                                                                                      1. Make-Up Strategies
                                                                                        1. Bygones vs. Base Drift
                                                                                        2. Policy Challenges
                                                                                          1. Communication Complexity
                                                                                            1. Transition Issues
                                                                                          2. Average Inflation Targeting
                                                                                            1. Federal Reserve's New Framework
                                                                                              1. Symmetric Inflation Target
                                                                                                1. Make-Up Strategies
                                                                                              2. Challenges for Monetary Policy
                                                                                                1. The Zero Lower Bound (ZLB)
                                                                                                  1. Constraints on Policy Rates
                                                                                                    1. Effective Lower Bound
                                                                                                      1. Cash Hoarding
                                                                                                      2. Alternative Tools
                                                                                                        1. Quantitative Easing
                                                                                                          1. Forward Guidance
                                                                                                            1. Negative Interest Rates
                                                                                                            2. Exit Strategies
                                                                                                              1. Normalization Process
                                                                                                                1. Balance Sheet Reduction
                                                                                                              2. Financial Crises and Systemic Risk
                                                                                                                1. Crisis Management
                                                                                                                  1. Lender of Last Resort
                                                                                                                    1. Emergency Lending
                                                                                                                      1. Coordination with Fiscal Policy
                                                                                                                      2. Macroprudential Policy
                                                                                                                        1. Systemic Risk Monitoring
                                                                                                                          1. Countercyclical Buffers
                                                                                                                            1. Stress Testing
                                                                                                                            2. Moral Hazard Issues
                                                                                                                              1. Too-Big-to-Fail
                                                                                                                                1. Risk-Taking Incentives
                                                                                                                              2. Asset Price Bubbles
                                                                                                                                1. Identification and Response
                                                                                                                                  1. Bubble Detection
                                                                                                                                    1. Preemptive vs. Reactive Policy
                                                                                                                                    2. Lean vs. Clean Debate
                                                                                                                                      1. Preventive Action
                                                                                                                                        1. Post-Bubble Cleanup
                                                                                                                                        2. Macroprudential Tools
                                                                                                                                          1. Loan-to-Value Ratios
                                                                                                                                            1. Capital Requirements
                                                                                                                                          2. Fiscal and Monetary Policy Interactions
                                                                                                                                            1. Coordination and Conflicts
                                                                                                                                              1. Policy Mix
                                                                                                                                                1. Timing Issues
                                                                                                                                                2. Fiscal Dominance
                                                                                                                                                  1. Debt Sustainability
                                                                                                                                                    1. Inflation Tax
                                                                                                                                                      1. Central Bank Independence
                                                                                                                                                    2. Climate Change and Monetary Policy
                                                                                                                                                      1. Green Finance
                                                                                                                                                        1. Climate Risk Assessment
                                                                                                                                                          1. Sustainable Finance Frameworks

                                                                                                                                                      Previous

                                                                                                                                                      6. Money, Inflation, and Output

                                                                                                                                                      Go to top

                                                                                                                                                      Next

                                                                                                                                                      8. International Monetary Economics