How to Measure the Monetary Stance

Olamide Harrison and Vina Nguyen

No 2025/003, IMF Fiscal Affairs Department from International Monetary Fund

Abstract: This note provides a conceptual framework to organize discussions of the appropriateness of the monetary policy stance and presents tools that country teams can employ to measure, report, and evaluate the stance of monetary policy. The note focuses exclusively on aggregate demand considerations—on whether the stance is tight or loose—without considering whether such a stance is appropriate for achieving policy objectives. The latter requires considering aggregate supply and Phillips Curve trade-offs. The note does not cover other macroeconomic policies, such as macroprudential or fiscal measures, which could also have a considerable impact on the effectiveness of monetary policy.

Keywords: Monetary policy stance; natural interest rate; neutral interest rate; yield curve; data IMF Library; ante real interest rates; publication order; inflation expectation; Real interest rates; Central bank policy rate; Inflation; Monetary stance; Global (search for similar items in EconPapers)
Pages: 24
Date: 2025-01-30
New Economics Papers: this item is included in nep-cba and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=561248 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfhtn:2025/003

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Fiscal Affairs Department from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().