Two reasons why money and credit may be useful in monetary policy
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Two reasons why money and credit may be useful in monetary policy

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Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

Subjects:

  • Monetary policy -- Econometric models,
  • Money,
  • Credit

Book details:

About the Edition

We describe two examples which illustrate in different ways how money and credit may be useful in the conduct of monetary policy. Our first example shows how monitoring money and credit can help anchor private sector expectations about inflation. Our second example shows that a monetary policy that focuses too narrowly on inflation may inadvertently contribute to welfare-reducing boom-bust cycles in real and financial variables. The example is of some interest because it is based on a monetary policy rule fit to aggregate data. We show that a policy of monetary tightening when credit growth is strong can mitigate the problems identified in our second example.

Edition Notes

StatementLawrence Christiano, Roberto Motto, Massimo Rostagno.
SeriesNBER working paper series -- no. 13502., Working paper series (National Bureau of Economic Research) -- working paper no. 13502.
ContributionsMotto, Roberto., Rostagno, Massimo., National Bureau of Economic Research.
The Physical Object
Pagination38, [4] p. :
Number of Pages38
ID Numbers
Open LibraryOL17636131M
OCLC/WorldCa181027083

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T1 - Two Reasons Why Money and Credit May be Useful in Monetary Policy. AU - Christiano, Lawrence J. AU - Motto, Roberto. AU - Rostagno, Massimo. PY - / Y1 - / N2 - We describe two examples which illustrate in different ways how money and credit may be useful in the conduct of monetary by: Get this from a library! Two reasons why money and credit may be useful in monetary policy. [Lawrence J Christiano; Roberto Motto; Massimo Rostagno; National Bureau of Economic Research.] -- We describe two examples which illustrate in different ways how money and credit may be useful in the conduct of monetary policy. Downloadable! We describe two examples which illustrate in different ways how money and credit may be useful in the conduct of monetary policy. Our first example shows how monitoring money and credit can help anchor private sector expectations about inflation. Our second example shows that a monetary policy that focuses too narrowly on inflation may inadvertently contribute to welfare . Two Reasons Why Money and Credit May be Useful in Monetary Policy. Lawrence Paper presented at the Fourth ECB Central Banking Conference, The Role of Money: Money and Monetary Policy in the Twenty-First Century," Frankfurt, November , We would like to thank Claudio Borio, Dale Henderson, John Leahy, Andy Levin, Christian Noyer Cited by:

  The role of money / by Jürgen Stark --Two reasons why money and credit may be useful in monetary policy / by Lawrence J. Christiano, Roberto Motto and Massimo Rostagno --Does a "two-pillar Phillips curve" justify a two-pillar monetary policy strategy? / by Michael Woodford --Money and monetary policy: the ECB experience / by Björn.   Two reasons why money and credit may be useful in monetary policy. In: A. Beyer, L. Reichlin (Eds.), The role of money—money and monetary policy in the twenty-first century. Proceedings of the 4th ECB central banking conference (pp. 28–55), 9–10 November Lawrence Christiano & Roberto Motto & Massimo Rostagno, "Two Reasons Why Money and Credit May be Useful in Monetary Policy," NBER Working Papers , National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS). In both the cases, money and credit are circulated in the market generating more money and assisting in development. Therefore it is important to understand the concept of money and credit. It is this money and credit that helps us in improving our economy further. Solved Question For You. Q. RBI released Rs currency note in _____. a.

Monetary Policy. Get help with your Monetary policy homework. Access the answers to hundreds of Monetary policy questions that are explained in a way that's easy for you to understand. In this excerpt from the new book 'Other People's Money,' learn why tobacco leaves and other surprising things used to used as U.S. currency of this monetary system and ended the practice in.   The money supply is commonly defined to be a group of safe assets that households and businesses can use to make payments or to hold as short-term investments. For example, U.S. currency and balances held in checking accounts and savings accounts are included in many measures of the money . The usual goals of monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and the early 20th century, monetary policy was thought by most experts to be of little use in influencing the economy. Inflationary trends after World War II, however, caused governments to adopt measures that reduced.