New Economy, Old Central Banks?

Jan Marc Berk ()
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Jan Marc Berk: Monetary and Economic Policy Department, De Nederlandsche Bank, and Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam

No 02-087/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Proponents of the so-called New Economy claim that it entails a structural change of the economy. Such a change, in turn, would require the central bank to rethink its monetary policy to the extent that traditional relationships between inf1ation and economic growth are no longer valid. But such a rethinking presupposes that prospective advances in information technology and other factors associated with the new economy do not threaten the capacity of central banks to stabilise the general level of prices. It is the aim of this paper to shed some light on the latter, by analysing the monetary transmission mechanism in a 'new economy' environment. We argue that, although the form of central bank instruments and current methods for implementing monetary policy may change, the goals that the policy makers try to achieve by employing these instruments remain valid, and achievable.

Keywords: Electronic money; New Economy; Monetary policy (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 (search for similar items in EconPapers)
Date: 2002-09-04, Revised 2002-08-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20020087

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