Monetary policy and central bank behaviour

Manfred Gärtner ()

University of St. Gallen Department of Economics working paper series 2002 from Department of Economics, University of St. Gallen

Abstract: This paper surveys the state of the art on monetary policy and central bank behaviour from a public choice perspective. After a brief look at the roots of today’s view of monetary policy conduct and institutional design in early work on political business cycles, the inflation-stabilisation dilemma is discussed along with proposed solutions in the form of central bank independence and conservativeness, incentive contracts, and inflation targets. The final section turns to current developments, including the proper choice of policy targets, the role of New Keynesian aggregate-supply curves and the quest for monetary policy rules triggered by the Taylor rule.

Keywords: Monetary policy; Central banking; Public choice (search for similar items in EconPapers)
JEL-codes: E31 E32 E52 E58 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2002-10
New Economics Papers: this item is included in nep-cba, nep-fin, nep-mon and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2002:2002-24

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