EC economic and monetary policy

Economic Structure and Monetary Policy Design

In this paper, I consider the lessons recent academic research and historical experiences with monetary targeting and inflation targeting offer for the design of monetary policy regimes. The practical experiences with both monetary and inflation targeting suggest that successful policies have incorporated a great deal of flexibility. In principle, both monetary targeting and inflation targeting...

Monetary Policy Uncertainty and Economic Fluctuations

We investigate the relationship between uncertainty about monetary policy and its transmission mechanism, and economic fluctuations. We propose a new term structure model where the second moments of macroeconomic variables and yields can have a first-order effect on their dynamics. The data favors a model with two unspanned volatility factors that capture uncertainty about monetary policy and t...

Monetary Policy, Fiscal Policy, and Aggregate Economic Activity in Korea

Using monetary policy to stabilize economic activity

Indeed, one of the …rst lessons one learns from studying a variety of hypothetical models is that the problem of economic stabilization is, even in principle, an extremely intricate one, and that a much more thorough investigation of both theoretical principles and empirical relationships would be needed before detailed policy recommendations could be justi…ed.”A. W. Phillips (1957, reprinted 1...

Monetary Policy in a Changing Economic Environment

Three years ago at this same conference, I was given an opportunity to talk about Japan’s monetary policy in the years when asset price bubbles expanded.1 Today, I would like mainly to review monetary policy in the following phase when the bubbles burst, for an asset price swing is the “changing economic environment” most relevant to us. Incidentally, we are now in the third phase when the econ...