Monetary Policy

  1. Monetary Policy Frameworks and Strategies
    1. Inflation Targeting
      1. Framework Components
        1. Numerical Target
          1. Target Horizon
            1. Tolerance Bands
            2. Target Specifications
              1. Point Targets
                1. Range Targets
                  1. Average Inflation Targeting
                  2. Institutional Arrangements
                    1. Central Bank Mandates
                      1. Accountability Mechanisms
                        1. Communication Strategies
                        2. Advantages and Criticisms
                          1. Transparency Benefits
                            1. Anchoring Expectations
                              1. Flexibility Concerns
                                1. Financial Stability Issues
                              2. Price-Level Targeting
                                1. Conceptual Framework
                                  1. Level vs. Rate Targeting
                                    1. Base Period Selection
                                    2. Make-Up Strategies
                                      1. Bygones vs. Base Drift
                                        1. Credibility Requirements
                                        2. Theoretical Advantages
                                          1. Expectations Stabilization
                                            1. Zero Lower Bound Performance
                                            2. Practical Challenges
                                              1. Communication Complexity
                                                1. Transition Costs
                                              2. Nominal GDP Targeting
                                                1. Framework Design
                                                  1. Level vs. Growth Rate Targeting
                                                    1. Trend Growth Assumptions
                                                    2. Theoretical Appeal
                                                      1. Supply Shock Accommodation
                                                        1. Automatic Stabilization
                                                        2. Implementation Challenges
                                                          1. Data Availability
                                                            1. Revision Problems
                                                              1. Public Understanding
                                                            2. Monetary Aggregate Targeting
                                                              1. Historical Context
                                                                1. Monetarist Influence
                                                                  1. 1970s and 1980s Experience
                                                                  2. Target Selection
                                                                    1. M1 Targeting
                                                                      1. M2 Targeting
                                                                        1. Broader Aggregates
                                                                        2. Decline and Abandonment
                                                                          1. Money Demand Instability
                                                                            1. Financial Innovation Effects
                                                                              1. Velocity Unpredictability
                                                                            2. Exchange Rate Targeting
                                                                              1. Fixed Exchange Rate Systems
                                                                                1. Currency Pegs
                                                                                  1. Currency Boards
                                                                                  2. Crawling Pegs
                                                                                    1. Predetermined Crawls
                                                                                      1. Backward-Looking Crawls
                                                                                      2. Target Zones
                                                                                        1. Central Parity
                                                                                          1. Intervention Bands
                                                                                        2. The Taylor Rule
                                                                                          1. Original Formulation
                                                                                            1. Inflation Gap Component
                                                                                              1. Output Gap Component
                                                                                                1. Equilibrium Real Rate
                                                                                                2. Rule Variations
                                                                                                  1. Forward-Looking Rules
                                                                                                    1. Smoothing Rules
                                                                                                      1. Augmented Rules
                                                                                                      2. Empirical Performance
                                                                                                        1. Descriptive Accuracy
                                                                                                          1. Prescriptive Value
                                                                                                          2. Limitations and Criticisms
                                                                                                            1. Real-Time Data Problems
                                                                                                              1. Parameter Uncertainty
                                                                                                                1. Financial Stability Omission

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                                                                                                            6. Unconventional Monetary Policy Tools

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                                                                                                            8. Challenges and Limitations of Monetary Policy