Alternative Targets for Monetary Policy PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Alternative Targets for Monetary Policy PDF full book. Access full book title Alternative Targets for Monetary Policy by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy. Download full books in PDF and EPUB format.

Alternative Targets for Monetary Policy

Author: United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy
Publisher:
ISBN:
Category : Government publications
Languages : en
Pages : 112

Get Book Here

Book Description

Alternative Targets for Monetary Policy

Get Book Here

Book Description

ALTERNATIVE TARGETS FOR MONETARY POLICY

Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 8

Get Book Here

Book Description

Alternative Reserve Concepts as Operating Targets in Monetary Policy Implementation

Author: Glenn C. Picou
Publisher:
ISBN:
Category : Bank reserves
Languages : en
Pages : 98

Get Book Here

Book Description

Legislation for Alternative Targets for Monetary Policy

Get Book Here

Book Description

Legislation for Alternative Targets for Monetary Policy

Get Book Here

Book Description

Alternatives to Inflation Targeting Monetary Policy for Stable and Egalitarian Growth

Author: Gerald Epstein
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

Get Book Here

Book Description
Many countries in the developing world have adopted an approach to monetary policy that focuses on maintaining a low level of inflation, to the exclusion of other important objectives such as employment generation, increasing investment or reducing poverty, despite the widespread evidence that moderate levels of inflation have few or no costs. Some have even adopted formal "inflation targeting", an approach which commits the central bank to hitting a fairly rigid inflation target, often as low as 2%. However, this focus has led to slower economic growth and lower employment growth, without succeeding in lowering inflation at a smaller economic cost than traditional methods of inflation fighting. Clearly, it is time to find an alternative to inflation targeting. This paper presents the real targeting approach to monetary policy, which I argue is superior alternative to the costly and ineffective inflation targeting approach. Under this real targeting approach, central banks are given a country appropriate target such as employment growth, unemployment, real GDP or investment, usually subject to an inflation constraint. Given these two targets - the real target and the constraint - the central bank will find multiple tools to reach these targets, designing new tools and rediscovering old tools such as asset based reserve requirements and other credit allocation techniques. The real targeting approach might also be complemented by other policies, such as capital management techniques to deal with possible capital flight. The real targeting approach has the potential to make central bank policy more transparent, more accountable, and more socially useful than most currently existing central bank structures.

Alternative Targets for Monetary Policy

Get Book Here

Book Description

Beyond Inflation Targeting

Author: Gerald A. Epstein
Publisher: Edward Elgar Publishing
ISBN: 9781848448049
Category : Anti-inflationary policies
Languages : en
Pages : 0

Get Book Here

Book Description
This book, written by an international team of economists, develops concrete, country specific alternatives to inflation targeting, the dominant policy framework of central bank policy that focuses on keeping inflation in the low single digits to the virtual exclusion of other key goals such as employment creation, poverty reduction and sustainable development. The book includes thematic chapters, including analyses of class attitudes toward inflation and unemployment and the gender impacts of restrictive monetary policy. Other chapters propose improved monetary frameworks for Argentina, Brazil, India, Mexico, the Philippines, South Africa, Turkey, and Vietnam. Policy frameworks that are explored include employment targeting, and targeting a stable and competitive real exchange rate. The authors also show that to reach a larger number of targets, including higher employment and stable inflation, central banks must use a larger number of instruments, including capital management techniques. This volume offers concrete, socially valuable alternatives that economists, policy makers, students and interested laypeople should consider before adopting one size fits all, often inadequate, policies that have become a virtual policy making fad.

Targeting Inflation

Author: Dimitri B. Papadimitriou
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

Get Book Here

Book Description
Most observers of the Federal Reserve are willing to credit it with success at achieving low and stable rates of inflation. Many do not even question that the Fed's primary concern should be fighting inflation. However, the targets for monetary policy adopted by the Fed in recent years have not proven to be closely correlated with inflation, and commentators criticize the Fed's apparent predilection to choose whichever target appears to be pointing in the "right" direction. In the search for a target that seems to be closely correlated with inflation, some theorists and policymakers have advocated the use of a price index--most notably the consumer price index (CPI)--as both the target and the goal of monetary policy. Executive Director Dimitri B. Papadimitriou and Research Associate L. Randall Wray argue in this Public Policy Brief that the CPI deviates in several important respects from an ideal theoretical measure of inflation. An ideal measure would, first, accurately reflect market-caused price increases and, second, potentially be under the control of monetary policy. The authors show that the CPI fails in both respects. Papadimitriou and Wray attempt to determine which components of the CPI have tended to pull up the index and to analyze the avenues through which monetary policy might attenuate the rate of price increase of these individual components. Their investigation is consistent with recent concerns over apparent biases in the CPI when used as a cost-of-living index, but their analysis extends beyond such concerns; they also focus on how and why the CPI is not appropriate as a target or goal of monetary policy because the transmission mechanisms through which monetary policy is thought to affect the CPI are tenuous at best. The authors argue that this is due in part to the fact that components of the CPI involve "imputed" values that are largely unconnected with those fundamental market forces likely to be influenced by Fed policy. Papadimitriou and Wray note that although "it is beyond the scope of this Public Policy Brief to examine all of the components of the CPI, we are convinced that use of any index of price changes will be fraught with difficulties similar to those outlined here." The anomalies they find in the CPI's housing component data are not unique; rather, they "suspect there are other important anomalies reflected in the CPI that make it a poor measure of inflation to be used in monetary policy formation." Therefore, careful reconsideration of an alternative ultimate target, such as the rate of economic growth or the unemployment rate, is warranted. However, given the uncertainties involved in the choice of such ultimate targets, the authors think it would be premature for the Fed to commit to any particular goal, especially one of "price stability." Moreover, because the evidence presented here sheds doubt on how central banks might fight inflation or if they can reduce it, and because there is no credible evidence that a moderate rise in interest rates causes smooth curtailment of spending plans, the authors conclude that this is an inappropriate time to amend the Employment Act of 1946 and the Humphrey-Hawkins Act of 1978 and to require the Fed to focus on price stability and to ignore other important economic indicators of our nation's well-being.

The Choice of Intermediate and Operating Targets for Monetary Policy

Author: A. Grimes
Publisher:
ISBN:
Category : Monetary policy
Languages : en
Pages : 60

Get Book Here

Book Description