The 'New Consensus' View of Monetary Policy: A New Wicksellian Connection?

Giuseppe Fontana

European Journal of Economics and Economic Policies: Intervention, 2006, vol. 3, issue 2, 263-278

Abstract: One of the greatest achievements of the modern 'New Consensus' view in macroeconomics is the assertion of a non-quantity-theoretic approach to monetary policy. Leading theoricians and practitioners of this view have indeed rejected the quantity theory of money, and defended a return to the old Wicksellian idea of eliminating high levels of inflation by adjusting nominal interest rates to changes in the price level. This paper evaluates these recent developments in the theory and practice of monetary policy in terms of two basic questions, namely what is the monetary policy instrument controlled by the central bank, and which macroeconomic variables are affected in the short and long run by monetary policy.

Keywords: Wicksell; monetary policy; New Consensus; endogenous money (search for similar items in EconPapers)
JEL-codes: E5 E52 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.elgaronline.com/view/journals/ejeep/3-2/ejeep.2006.02.10.xml (application/pdf)

Related works:
Working Paper: The "New Consensus" View of Monetary Policy: A New Wicksellian Connection? (2006)
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:elg:ejeepi:v:3:y:2006:i:2:p:263-278

Access Statistics for this article

European Journal of Economics and Economic Policies: Intervention is currently edited by Torsten Niechoj

More articles in European Journal of Economics and Economic Policies: Intervention from Edward Elgar Publishing
Bibliographic data for series maintained by Phillip Thompson ().