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Imperfect Knowledge and Monetary Policy

Imperfect Knowledge and Monetary Policy

Paperback

Series: Stone Lectures in Economics

EconomicsInvesting & FinanceGeneral Political Science

ISBN10: 0521671078
ISBN13: 9780521671071
Publisher: Cambridge
Published: Feb 16 2006
Pages: 152
Weight: 0.48
Height: 0.42 Width: 5.58 Depth: 8.52
Language: English
Based on lectures given as part of The Stone Lectures in Economics, this book discusses the problem of formulating monetary policy in practice, under the uncertain circumstances which characterize the real world. How should central banks set monetary policy? In which way should they take uncertainty into account when designing a monetary policy strategy? Should they respond to shocks aggressively or cautiously? These questions are discussed both with reference to the experience of the Bundesbank and of the European Central Bank and in relation to a simple stylized economic model.

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