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Recent Developments in Monetary Policy

Author

Listed:
  • Peter Howells

    (University of the West of England, Bristol)

  • Iris Biefang Frisancho-Mariscal

    (University of the West of England, Bristol)

Abstract

In the fifteen years leading up to the financial crisis in 2008, there emerged a great deal of agreement on the optimal design of monetary policy. This policy ‘consensus’ was accompanied also by a widely-shared view of how macroeconomies worked as the ‘Keynesian’ versus ‘monetarist’ debates slipped into the past. This paper charts the emergence of this consensus and then looks at the way in which the apparently settled ideas of monetary policy have been disrupted by recent events. In particular, it looks at the way in which the crisis has forced a revision of both the targets and instruments of monetary policy.

Suggested Citation

  • Peter Howells & Iris Biefang Frisancho-Mariscal, 2010. "Recent Developments in Monetary Policy," Working Papers 1017, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:1017
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    File URL: http://carecon.org.uk/DPs/1017.pdf
    File Function: First version, 2010
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    References listed on IDEAS

    as
    1. Milton Friedman & Anna J. Schwartz, 1982. "The Role of Money," NBER Chapters, in: Monetary Trends in the United States and United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975, pages 621-632, National Bureau of Economic Research, Inc.
    2. Benjamin M. Friedman, 1984. "Lessons from the 1979-1982 Monetary Policy Experiment," NBER Working Papers 1272, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Landais, Bernard, 2011. "Conduite et efficacité de la politique économique : les leçons de la crise [Management and Efficiency of the Economic Policies : The Crisis' Lessons"]," MPRA Paper 31223, University Library of Munich, Germany.

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    More about this item

    Keywords

    Monetary policy; quantity theory; Phillips curve;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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