Avoiding significant monetary policy mistakes

Preston J. Miller and Gary H. Stern

Quarterly Review, 2004, vol. 28, issue Dec, 2-9

Abstract: We deduce properties of optimal monetary policies based on modern theory and standard empirical findings. In light of this analysis, we examine FOMC policy procedures and conclude that they put too much emphasis on short-term economic stabilization and too little emphasis on longer-term price stability. We propose a form of inflation targeting to address this problem.

Keywords: Monetary; policy (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (2)

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