Issues Concerning Nominal Anchors for Monetary Policy /

This paper presents a selective survey of issues relevant to the choice of nominal anchors for monetary policy. Section I reviews long price-level histories for the United Kingdom and United States, which reveal that the price level behaved very differently following WWII in these countries than it...

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Bibliographic Details
Main Author: Mussa, Michael
Other Authors: Flood, Robert
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1994.
Series:IMF Working Papers; Working Paper ; No. 1994/061
Online Access:Full text available on IMF
Description
Summary:This paper presents a selective survey of issues relevant to the choice of nominal anchors for monetary policy. Section I reviews long price-level histories for the United Kingdom and United States, which reveal that the price level behaved very differently following WWII in these countries than it had done in previous post-war experiences. In particular following WWII the responsibilities of monetary policy expanded to encompass a business- cycle stabilization role and the nominal anchor shifted from the fixed anchor or price-level stability to the moving anchor of inflation-rate stability. The remaining sections of the paper review some of the considerations that are relevant to setting the average inflation rate in countries without a fixed nominal anchor.
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Physical Description:1 online resource (41 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students