On the theory of interest rate policy
Peter Spahn ()
BNL Quarterly Review, 2001, vol. 54, issue 219, 355-380
A new consensus in the theory of monetary policy has been reached pointing to the pivotal role of interest rates that are set in accordance with central banks' reaction functions. The decisive criterion of assessing the Taylor rule, inflation and monetary targeting is not the macrotheoretic foundation of these concepts. They serve as "languages" coordinating heterogeneous beliefs among policy makers and private agents, and should also allow rule-based discretionary policies when markets are in need of leadership. Contrary to the ECB dogma, the Fed is right to have an eye on the risks of inflation and unemployment.
Keywords: Interest Rates; Interest; Monetary Policy; Monetary; Policy (search for similar items in EconPapers)
JEL-codes: E43 E58 E52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Journal Article: On the theory of interest rate policy (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:psl:bnlaqr:2001:42
Ordering information: This journal article can be ordered from
Access Statistics for this article
BNL Quarterly Review is currently edited by Alessandro Roncaglia
More articles in BNL Quarterly Review from Banca Nazionale del Lavoro
Series data maintained by Carlo D'Ippoliti ().