Here are a couple of good articles on the monetary policy debate. First from Australia (and this fine blog with more discussion here and here): Meanwhile, the central bank’s primary focus on inflation recognizes that monetary policy needs to be based on a single instrument and policy objective. Pursuing multiple objectives with multiple instruments, as […]
I have noticed a lot of talk about how we need to change the monetary policy paradigm (like here, here, here, here, and here). Comments here, and here, have been especially vocal. There has been a lot of talk of monetary policy being “20 years old” so we should “fix it”. However, what is monetary […]
Here is some sense talking from a central banker and trade representative from Brazil: Senior Brazilian trade representative Mario Marconini from the Federation of Industries of Sao Paulo, says there’s a growing realisation from Brazilian businesses that trying to control the exchange rate is fruitless. The long-term answer can only come from concerted international action […]
David Cunliffe has done a guest post on the Rates Blog looking at Labour’s change in monetary policy … policy. [We have discussed this here, here, and here already]. As far as I can tell (tell me if I’m wrong), the content of the post boils down to this paragraph: More importantly, acting alone it […]
Labour has stated four goals for their special monetary policy. Let me discuss what these mean in turn. [Note we already have two posts on this issue today]. Labour goals were: a stable and competitive exchange rate; reduced interest rates for businesses and home owners; continued priorities of price stability and low inflation; to guard […]
In a recent speech (ht Rates Blog) Goff committed to destroying monetary policy independence and damaging the New Zealand economy if he gets into power. That is all well and good. However, I think part of the reason this issue has occurred is because of a lack of understand around the necessity of monetary policy […]