Central Banking in Theory and PracticeAlan S. Blinder offers the dual perspective of a leading academic macroeconomist who served a stint as Vice-Chairman of the Federal Reserve Board—one who practiced what he had long preached and then returned to academia to write about it. He tells central bankers how they might better incorporate academic knowledge and thinking into the conduct of monetary policy, and he tells scholars how they might reorient their research to be more attuned to reality and thus more useful to central bankers. Based on the 1996 Lionel Robbins Lectures, this readable book deals succinctly, in a nontechnical manner, with a wide variety of issues in monetary policy. The book also includes the author's suggested solution to an age-old problem in monetary theory: what it means for monetary policy to be "neutral." |
Contents
Targets Instruments and All That | v |
Choosing and Using a Monetary Policy Instrument | 13 |
Central Bank Independence | 41 |
Notes | 65 |
References | 71 |
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academic Alan Greenspan argued bank's Barro and Gordon believe Bernanke Blinder Central Bank Independence central banking circles choice of monetary cointegration compute Congress credibility decisionmaking definition disinflation dynamic inconsistency dynamic programming econometric models economists estimate example fact Fed's federal funds rate Federal Reserve Board financial markets FOMC decisions forecasts governor incentive independent central bank inflationary bias Journal Kydland lags in monetary Lionel Robbins literature long rates low inflation ment mone monetary authorities monetary instrument monetary policy monetary policy decisions natural rate neutral real interest nominal GDP nominal interest rate parameter Phillips curve policy instrument policymakers political politicians practical central bankers preemptive strike problem rational expectations reach for short-term real interest rate real rate reason Richard Layard rules versus discretion short-run short-term gains short-term interest rates simple steady-state IS curve strategy suggested target tary policy term structure theorists Tinbergen Tinbergen-Theil framework tion uncertainty variables zero