Allan H. Meltzer

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  • Michael D. Bordo, Olivier Jeanne, +4 authors Michael D Bordo
  • 2002
The link between monetary policy and asset price movements has been of perennial interest to policy makers. In this paper we consider the potential case for pre-emptive monetary restrictions when asset price reversals can have serious effects on real output. First, we present some stylized facts on boom-bust dynamics in stock and property prices in(More)
We de…ne and study transparency, credibility, and reputation in a model where the central bank’s characteristics are unobservable to the private sector and inferred from the policy outcome. A low-credibility bank optimally conducts a more expansionary policy than a high-credibility bank, in the sense that it induces higher in‡ation, but a less expansionary(More)
The paper examines the transmission mechanism of monetary policy in an open economy with and without a binding zero bound on nominal interest rates. In particular, a foolproof way of escaping from a liquidity trap is suggested, consisting of a price-level target path, a devaluation of the currency and a temporary exchange rate peg, which is later abandoned(More)
R ecent years have witnessed an upsurge of interest among monetary policy analysts in the topic of simple and explicit rules for monetary policy. In this recent work it is presumed that such rules would not be followed literally and slavishly by central banks, but that they could be consulted for indicative purposes—perhaps by providing a starting point for(More)
The reduction in inflation that occurred in the early 1980s, when the Federal Reserve was headed by Paul Volcker, is arguably the most widely discussed and visible macroeconomic event of the last 50 years of U.S. history. Inflation had been dramatically rising, but under Volcker, the Fed first contained and then reversed this process. Using a simple modern(More)
This paper provides an analytical characterization of Markov perfect equilibria in a model with repeated voting, where agents vote over distortionary income redistribution. A key result is that the future constituency for redistributive policies depends positively on current redistribution, since this a¤ects both private investments and the future(More)