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Considerations Regarding The Concept Of Monetary Policy

Author

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  • Monica-Ionelia Mărgărit

    (University of Craiova Faculty of Economics and Business Administration)

Abstract

This paper aims to make a conceptual analysis of the monetary policy notion by reviewing the literature regarding the concept of monetary policy, as well as, by highlighting the way in which monetary policy opinions have changed in time. Further, we presented the transmission mechanism of monetary policy together with the most important channels through which central banks, by using various monetary policy instruments, can affect the dynamics of aggregate demand and prices in the economy. The paper ends by reviewing the main objectives of central banks and their evolution in time.

Suggested Citation

  • Monica-Ionelia Mărgărit, 2019. "Considerations Regarding The Concept Of Monetary Policy," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(47), pages 71-78, November.
    • Handle: RePEc:aio:aucsse:v:1:y:2019:i:47:p:71-78
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    References listed on IDEAS

    as
    1. Kenneth N. Kuttner & Patricia C. Mosser, 2002. "The monetary transmission mechanism: some answers and further questions," Economic Policy Review, Federal Reserve Bank of New York, vol. 8(May), pages 15-26.
    2. Sargent, Thomas J & Wallace, Neil, 1975. ""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 241-254, April.
    3. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, June.
    4. Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
    5. Allan H. Meltzer, 1995. "Money, Credit and Policy," Books, Edward Elgar Publishing, number 311.
    6. Kenneth Kuttner & Patricia Mosser, 2002. "The monetary transmission mechanism in the United States: some answers and further questions," BIS Papers chapters, in: Bank for International Settlements (ed.), Market functioning and central bank policy, volume 12, pages 433-443, Bank for International Settlements.
    7. Fischer, Stanley, 1977. "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 191-205, February.
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    More about this item

    Keywords

    monetary policy; central banks; inflation targeting; monetary targeting;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other

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