Why Monetary Policy Matters
نویسنده
چکیده
This paper provides a non-technical introduction to monetary policy—what it is, how it works, and why it matters. It discusses inflation volatility and why this is damaging to the economy, as well as why increased stability of output growth is desirable. In both cases, changes in Canadian economic performance over the past few decades are examined. The paper also provides a detailed discussion of the transmission mechanism for monetary policy and of the types of uncertainty that central banks must face in their conduct of monetary policy. Finally, the paper describes the types of information that central banks need in order to conduct monetary policy prudently. __________________________________________________________________ This paper expresses my own views about monetary policy and should not be interpreted as representing the official view of the Bank of Canada. It was written while I was the visiting Special Adviser at the Bank of Canada (September 2004 to August 2005). I would like to thank the Bank for this opportunity, as well as the many individuals who gave helpful comments on successive versions of the paper. All remaining errors are mine.
منابع مشابه
Why Monetary Policy Matters: A Canadian Perspective
This paper provides a non-technical introduction to monetary policy—what it is, how it works, and why it matters. It discusses inflation volatility and why this is damaging to the economy, as well as why increased stability of output growth is desirable. In both cases, changes in Canadian economic performance over the past few decades are examined. The paper also provides a detailed discussion ...
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