01682cas a2200253 a 4500 AALejournalIMF003224 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859942 1018-5941 BD-DhAAL BD-DhAAL Bayoumi, Tamim. Deconstructing the Art of Central Banking / Tamim Bayoumi, Silvia Sgherri. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper proposes a markedly different transmission mechanism from monetary policy to the macroeconomy, focusing on how policy changes nominal inertia in the Phillips curve. Using recent theoretical developments, we examine the properties of a small, estimated U.S. monetary model distinguishing four monetary regimes employed since the late 1950s. We find that changes in monetary policy are linked to shifts in nominal inertia, and that these improvements in supply-side flexibility are indeed the main channel through which monetary policy lowers the volatility of inflation and, even more importantly, output. Mode of access: Internet Sgherri, Silvia. IMF Working Papers; Working Paper ; No. 2004/195 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/195/001.2004.issue-195-en.xml IMF e-Library