Where next for monetary policy? lessons from the financial crisis and the pandemic

A. Patrick Minford

No E2023/25, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: Monetary developments of recent decades began with much promise with inflation targeting by independent central banks; the financial crisis of 2007 ushered in a period of great monetary instability. There are lessons for a return to more stability. Central banks need to stabilize money supply growth. Fiscal policy should be coopted to a stabilization role to reduce interest rate instability, and particularly future risks of hitting the zero-interest rate bound. Budget discipline should be enforced by long run solvency rules, not by short run fiscal rules that in practice prevent the use of fiscal policy. Nor should the budget be burdened by monetary policy methods that transfer seigniorage to commercial banks.

Pages: 9 pages
Date: 2023-09
New Economics Papers: this item is included in nep-ban and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://carbsecon.com/wp/E2023_25.pdf (application/pdf)

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:cdf:wpaper:2023/25

Access Statistics for this paper

More papers in Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section Contact information at EDIRC.
Bibliographic data for series maintained by Yongdeng Xu ().