Central bank misperceptions and the role of money in interest rate rules

Abstract

Research with Keynesian-style models has emphasized the importance of the output gap for policies aimed at controlling inflation while declaring monetary aggregates largely irrelevant. Critics, however, have argued that these models need to be modified to account for observed money growth and inflation trends, and that monetary trends may serve as a useful… (More)

Topics

9 Figures and Tables

Slides referencing similar topics