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Experiments on Monetary Policy and Central Banking

In: Experiments in Macroeconomics

Author

Listed:
  • Camille Cornand
  • Frank Heinemann

Abstract

In this article, we survey experiments that are directly related to monetary policy and central banking. We argue that experiments can also be used as a tool for central bankers for bench testing policy measures or rules. We distinguish experiments that analyze the reasons for non-neutrality of monetary policy, experiments in which subjects play the role of central bankers, experiments that analyze the role of central bank communication and its implications, experiments on the optimal implementation of monetary policy, and experiments relevant for monetary policy responses to financial crises. Finally, we mention open issues and raise new avenues for future research.

Suggested Citation

  • Camille Cornand & Frank Heinemann, 2014. "Experiments on Monetary Policy and Central Banking," Research in Experimental Economics, in: Experiments in Macroeconomics, volume 17, pages 167-227, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:rexezz:s0193-230620140000017006
    DOI: 10.1108/S0193-230620140000017006
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    References listed on IDEAS

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