Download or read book A Comparison of Monetary Aggregates as Monetary Policy Targets written by Richard Joseph Rivard and published by . This book was released on 1978 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Aggregates as Targets written by Charles Freedman and published by . This book was released on 1981 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the mid-1970s the Bank of Canada, along with a number of other central banks, began to set explicit targets for monetary growth and to emphasize the long-run role of monetary aggregates in controlling the rapid upward trend of prices. There are three distinct ways of viewing and interpreting a policy of setting growth targets for monetary aggregates. The first is associated with the work of William Poole, the second is derived from the reduced-form model initially developed at the Federal Reserve Bank of St. Louis, and the third, which the author has labeled the feedback- rule approach, is related to the techniques developed within central banks to implement the policy of monetary targeting. In this paper the author sets forth the logic and examines the implications of these three methods when the principal aim of policy is reducing the rate of inflation. He also examines the question of gradualist versus "cold-shower" policies and the criteria for selecting a monetary aggregate as a policy target.
Download or read book Weighted Monetary Aggregates as Intermediate Targets written by Dallas S. Batten and published by . This book was released on 1985 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Aggregates as Monetary Targets written by Charles H. Whiteman and published by . This book was released on 1990 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Money Targeting in a Modern Forecasting and Policy Analysis System written by Michal Andrle and published by International Monetary Fund. This book was released on 2013-11-25 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: We extend the framework in Andrle and others (2013) to incorporate an explicit role for money targets and target misses in the analysis of monetary policy in low-income countries (LICs), with an application to Kenya. We provide a general specification that can nest various types of money targeting (ranging from targets based on optimal money demand forecasts to those derived from simple money growth rules), interest-rate based frameworks, and intermediate cases. Our framework acknowledges that ex-post adherence to targets is in itself an objective of policy in LICs; here we provide a novel interpretation of target misses in terms of structural shocks (aggregate demand, policy, shocks to money demand, etc). In the case of Kenya, we find that: (i) the setting of money targets is consistent with money demand forecasting, (ii) targets have not played a systematic role in monetary policy, and (iii) target misses mainly reflect shocks to money demand. Simulations of the model under alternative policy specifications show that the stronger the ex-post target adherence, the greater the macroeconomic volatility. Our findings highlight the benefits of a model-based approach to monetary policy analysis in LICs, including in countries with money-targeting frameworks.
Download or read book Monetary Policy with a Credit Aggregate Target written by Benjamin M. Friedman and published by . This book was released on 1982 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: The principal criteria for the selection of an intermediate target for monetary policy are (1) that the target be closely related to the nonfinancial objectives of monetary policy, (2) that it contain information about the future movements of those relevant aspects of the nonfinancial economy, (3) that it be closely connected to the instruments over which the central bank can exert direct control, and (4) that data on it be readily available on a timely basis. The evidence presented in this paper indicates that, on each of the four criteria considered, total net credit is just as suitable as any of the monetary aggregates to serve as an intermediate target for monetary policy in the United States. As long as the Federal Reserve Sys tem continues to use an intermediate target procedure, this evidence is consistent with adopting a two-target framework based on both money and credit, thereby drawing on information from both sides of the public's balance sheet for the set of signals that govern the systematic response of monetary policy to economic events
Download or read book Monetary Targets written by Brian Griffiths and published by Springer. This book was released on 1981-06-25 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book On the Optimal Adherence to Money Targets in a New Keynesian Framework written by Ms.Filiz Unsal and published by International Monetary Fund. This book was released on 2010-06-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many low-income countries continue to describe their monetary policy framework in terms of targets on monetary aggregates. This contrasts with most modern discussions of monetary policy, and with most practice. We extend the new-Keynesian model to provide a role for “M” in the conduct of monetary policy, and examine the conditions under which some adherence to money targets is optimal. In the spirit of Poole (1970), this role is based on the incompleteness of information available to the central bank, a pervasive issues in these countries. Ex-ante announcements/forecasts for money growth are consistent with a Taylor rule for the relevant short-term interest rate. Ex-post, the policy maker must choose his relative adherence to interest rate and money growth targets. Drawing on the method in Svensson and Woodford (2004), we show that the optimal adherence to ex-ante targets is equivalent to a signal extraction problem where the central bank uses the money market information to update its estimate of the state of the economy. We estimate the model, using Bayesian methods, for Tanzania, Uganda (both de jure money targeters), and Ghana (a de jure inflation targeter), and compare the de facto adherence to targets with the optimal use of money market information in each country.
Download or read book Alternative Targets for Monetary Policy written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Domestic Monetary Policy and published by . This book was released on 1982 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Aggregates Interest Rates and Income as Short term Targets for Monetary Policy in the Small Open Economy written by Victor Argy and published by . This book was released on 1982 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Structural Change and the Choice of Appropriate Monetary Targets written by Gary Robert Evans and published by . This book was released on 1981 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Aggregates and Economic Activity written by Geoffrey E. J. Dennis and published by . This book was released on 1983 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: To investigate the relationships between mominal income and alternative monetary aggregates in U.S., U.K., Germany, France and Italys.
Download or read book Assessing the Validity of M1 as a Target for Monetary Policy written by and published by . This book was released on 1985 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Aggregates and Monetary Policy written by Federal Reserve Bank of New York and published by . This book was released on 1974 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Rise and Fall of Money Growth Targets as Guidelines for U S Monetary Policy written by Benjamin M. Friedman and published by . This book was released on 1996 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: A familiar question raised by the Federal Reserve System's evolving use of money growth targets over the past twenty years is whether monetary policymakers had sound economic reasons for changing their procedures as they did -- either in adopting money growth targets in the first place, or in subsequently abandoning them, or in both instances. This paper addresses that question by comparing two kinds of evidence based on U.S. time-series data: first, evidence bearing on what Federal Reserve policymakers should have known about the relationship of money to income and prices, and when they should have known it; and second, evidence showing how and when the Federal Reserve changed its actual (as opposed to stated) reliance on money growth targets. The main conclusion from this comparison is that whatever economic conditions might have warranted reliance on money growth targets in the 1970s and early 1980s had long disappeared by the 1990s, so that abandoning these targets was an appropriate response to changing circumstances. Whether adopting money growth targets earlier on was likewise appropriate is less clear.
Download or read book Targets Indicators and Instruments of Monetary Policy written by Bennett T. McCallum and published by . This book was released on 1989 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: It has become increasingly evident that the Federal Reserve's official strategy of the past decade, involving the adherence to target paths for monetary aggregates, is not currently being utilized to any significant extent. While some commentators welcome and others deplore this development, most would agree that a need exists for a more explicit and coherent strategy for the conduct of monetary policy. The present paper seeks to advance the strategic discussion in several ways. One involves a comparative consideration of targets for nominal GNP and the price level, with emphasis on specificational robustness and implications for output variability. A second pertains to various "indicator" variables recently suggested by Fed officials and others. In this regard, it is necessary to be clear and specific about the role of potential indicators. Consequently, a careful review of the relevant conceptual distinctions--concerning instruments, targets, indicators, etc.--is reqUired. Finally, the proposal that strategy should be conducted so as to place minimal reliance on quantity variables is given some attention, in the context of evidence concerning the merits of an interest rate instrument
Download or read book Intermediate Targets and Indicators for Monetary Policy written by Federal Reserve Bank of New York and published by . This book was released on 1990 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt:
