Central Bank Policy — Goals and Reality

Otmar Issing

Chapter 4 in Money and Banking, 1993, pp 41-54 from Palgrave Macmillan

Abstract: Abstract In Germany there is a particularly strong desire for a stable price level because of past experience of hyperinflation. Moreover, a low German inflation rate is of major significance for the European Monetary System. The central bank’s responsibility for fighting inflation and the limits to this responsibility depend on its position in the overall political system and on the policy instruments available to it. As economic theory fails to provide clear instructions on action in many situations calling for monetary policy decisions, monetary policy has considerable latitude in practice. The ‘stability culture’ of a society and the credibility of the central bank play a major part in determining the extent to which this latitude can be exploited for the implementation of an anti-inflationary central bank policy, even when the going gets tough.

Keywords: Monetary Policy; Central Bank; Inflation Rate; Price Stability; Inflationary Expectation (search for similar items in EconPapers)
Date: 1993
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-1-349-13319-2_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349133192

DOI: 10.1007/978-1-349-13319-2_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().