On Making Monetary Policy More Effective Domestically and Internationally

Allan Meltzer

Monetary and Economic Studies, 1996, vol. 14, issue 1, 1-27

Abstract: Increased interest in price stability as the principal goal of monetary policy raises an issue about how well central banks can meet that goal.One approach is to forecast inflation a year or more ahead.Inability to separate permanent inflation from transitory,one-time changes in price levels suggests that forecast errors cannot be held within the 2% range frequently used.The paper again suggests an adaptive rule for money growth.If adopted for the principal currencies,the proposed rule would increase welfare for participants.Countries that have the best records of inflation control have often followed a rule of this kind.

Keywords: Price stability; Inflation; Monetary policy; Central banks; Credibility; Adaptive rules (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.imes.boj.or.jp/research/papers/english/me14-1-1.pdf (application/pdf)

Related works:
Chapter: On Making Monetary Policy More Effective Domestically and Internationally (1997)
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:ime:imemes:v:14:y:1996:i:1:p:1-27

Access Statistics for this article

More articles in Monetary and Economic Studies from Institute for Monetary and Economic Studies, Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Kinken ().