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The design of monetary policy for development

In: Macroeconomics for Development

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Abstract

This chapter overviews the role of money in the economy, in particular the three prices of money. It then develops a basic macroeconomic model in its closed and open economy forms. It then develops the Taylor rule and discusses implications of its usage. It develops a critique of the use of inflation targeting as monetary policy in developing countries.

Suggested Citation

  • ., 2023. "The design of monetary policy for development," Chapters, in: Macroeconomics for Development, chapter 4, pages 48-65, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18793_4
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    Keywords

    Development Studies; Economics and Finance;

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