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With the collapse of the Bretton Woods system, any pretense of a connection of the world's currencies to any real commodity has been abandoned. Yet since the 1980s, most central banks have abandonedExpand
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Monetary Theory and Policy
Part 1 Empirical evidence on money and output: introduction some basic correlations estimating the effect of money on output summary. Part 2 Money in a general equilibrium framework: introduction theExpand
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Optimal monetary policy with the cost channel
In the standard new Keynesian framework, an optimizing policy maker does not face a trade-off between stabilizing the inflation rate and stabilizing the gap between actual output and output underExpand
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Optimal contracts for central bankers
This paper adopts a principal-agent framework to determine how a central banker's incentives should be structured to induce the socially optimal policy. In contrast to previous findings using ad hocExpand
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Speed Limit Policies: The Output Gap and Optimal Monetary Policy
In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output gap will implement a policy under discretion that replicates the optimal,Expand
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Testing intertemporal budget constraints: theory and applications to U. S. federal budget and current account deficits
This paper extends previous tests of intertemporal budget balance and present value relationships by expanding the set of allowable deficit processes and by deriving a testable condition that isExpand
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Labor Market Search, Sticky Prices, and Interest Rate Policies
  • C. Walsh
  • Economics, Computer Science
  • 1 March 2003
In this paper, a simple search model of the labor market is combined with sticky prices to investigate the dynamic response of the economy to nominal interest rate shocks. Expand
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Monetary Theory and Policy, 2nd Edition
Monetary Theory and Policy presents an advanced treatment of critical topics in monetary economics and the models economists use to investigate the interactions between real and monetary factors. ItExpand
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Inflation Targeting: What Have We Learned?
Inflation targeting has been widely adopted in both developed and emerging economies. In this essay, I survey the evidence on the effects of inflation targeting on macroeconomic performance andExpand
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Vacancies, Unemployment, and the Phillips Curve
The canonical new Keynesian Phillips Curve has become a standard component of models designed for monetary policy analysis. However, in the basic new Keynesian model, there is no unemployment, allExpand
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