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Monetary transmission: what do we know and how can we use it?

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  • J.M. BERK

    (De Nederlandsche Bank)

Abstract

The existence of a considerable and varying time lag between the actions by the central bank in adjusting its policy instruments and the effects on the respective target variable is widely acknowledged. As a result, the monetary policy maker needs to take a forward-looking approach in decision-making. A survey is undertaken of the possible channels of monetary transmission, and the problems faced by the imperfect knowledge of the policy maker about the transmission mechanism.

Suggested Citation

  • J.M. Berk, 1998. "Monetary transmission: what do we know and how can we use it?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 51(205), pages 145-170.
    • Handle: RePEc:psl:bnlqrr:1998:23
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    More about this item

    Keywords

    Monetary transmission; Monetary policy; Currency devaluation;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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