Recent Developments in Monetary Policy

Monetary policy in the major industrial countries has largely been a success story in recent years. This two-volume set includes previously published papers by Nobel Laureates, central bankers and leading research economists. The key advances in recent thinking that underpin modern monetary policy and indicate some of the current controversies that remain are brought together in this timely publication. Some of these challenges will continue to dominate the thinking of scholars and practitioners for years to come. An authoritative introduction by the editors provides a fascinating guide to this important field.

Table of Contents:
Contents: Volume I Acknowledgements Introduction Alec Chrystal and Paul Mizen PART I CREDIBILITY AND REPUTATION 1. Finn E. Kydland and Edward C. Prescott (1977), ‘Rules Rather than Discretion: The Inconsistency of Optimal Plans’ 2. Robert J. Barro and David B. Gordon (1983), ‘Rules, Discretion and Reputation in a Model of Monetary Policy’ 3. Kenneth Rogoff (1985), ‘The Optimal Degree of Commitment to an Intermediate Monetary Target’ 4. Francesco Giavazzi and Marco Pagano (1988), ‘The Advantage of Tying One’s Hands: EMS Discipline and Central Bank Credibility’ PART II TARGET ZONES 5. Paul R. Krugman (1991), ‘Target Zones and Exchange Rate Dynamics’ 6. Giuseppe Bertola and Ricardo J. Caballero (1992), ‘Target Zones and Realignments’ PART III CENTRAL BANK INDEPENDENCE 7. Guy Debelle and Stanley Fischer (1994), ‘How Independent Should a Central Bank Be?’ 8. Alex Cukierman (1994), ‘Central Bank Independence and Monetary Control’ PART IV INFLATION TARGETING 9. Carl E. Walsh (1995), ‘Optimal Contracts for Central Bankers’ 10. Lars E.O. Svensson (1997), ‘Optimal Inflation Targets, “Conservative” Central Banks, and Linear Inflation Contracts’ 11. Ben S. Bernanke and Frederic S. Mishkin (1997), ‘Inflation Targeting: A New Framework for Monetary Policy?’ PART V MONETARY TRANSMISSION 12. Ben S. Bernanke and Mark Gertler (1995), ‘Inside the Black Box: The Credit Channel of Monetary Policy Transmission’ 13. Nobuhiro Kiyotaki and John Moore (1997), ‘Credit Cycles’ 14. Charles T. Carlstrom and Timothy S. Fuerst (1997), ‘Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis’ 15. Lawrence J. Christiano, Martin Eichenbaum and Charles L. Evans (2005), ‘Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy’ 16. Marvin Goodfriend and Bennett McCallum (2007), ‘Banking and Interest Rates in Monetary Policy Analysis: A Quantitative Exploration’ PART VI POLICY RULES 17. John B. Taylor (1993), ‘Discretion versus Policy Rules in Practice’ 18. Richard Clarida, Jordi Gali and Mark Gertler (1998), ‘Monetary Policy Rules in Practice: Some International Evidence’ 19. Nicoletta Batini and Andrew Haldane (1999), ‘Forward-Looking Rules for Monetary Policy’ 20. Lars E.O. Svensson (2003), ‘What Is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting Rules’ 21. Bennett T. McCallum and Edward Nelson (2005), ‘Targeting versus Instrument Rules for Monetary Policy’ Name Index Volume II Acknowledgements An introduction to both volumes by the editors appears in Volume I PART I MONETARY POLICY AND ASSET PRICES 1. Ben S. Bernanke and Mark Gertler (2001), ‘Should Central Banks Respond to Movements in Asset Prices?’ 2. C.A.E. Goodhart (2001), ‘What Weight Should Be Given to Asset Prices in the Measurement of Inflation?’ 3. Charles Bean (2003), ‘Asset Prices, Financial Imbalances and Monetary Policy: Are Inflation Targets Enough?’ PART II LOW INFLATION, ZERO BOUNDS 4. Paul Krugman (1998), ‘It’s Baaack: Japan’s Slump and the Return of the Liquidity Trap’ 5. Bennett T. McCallum (2000), ‘Theoretical Analysis Regarding a Zero Lower Bound on Nominal Interest Rates’ 6. Marvin Goodfriend (2000), ‘Overcoming the Zero Bound on Interest Rate Policy’ PART III ROLE OF MONEY IN MONETARY POLICY 7. Michael Woodford (2000), ‘Monetary Policy in a World Without Money’ 8. Michael Woodford (2008), ‘How Important Is Money in the Conduct of Monetary Policy?’ 9. Bennett T. McCallum (2001), ‘Monetary Policy Analysis in Models Without Money’ PART IV UNCERTAINTY AND POLICY 10. Charles Goodhart (1999), ‘Central Bankers and Uncertainty’ 11. Athanasios Orphanides (2003), ‘Monetary Policy Evaluation with Noisy Information’ PART V LESSONS FROM RECENT MONETARY POLICY EXPERIENCE 12. Marvin Goodfriend (2005), ‘The Monetary Policy Debate Since October 1979: Lessons for Theory and Practice’ 13. Ben S. Bernanke, Alan S. Blinder and Bennett T. McCallum (2005), ‘Panel Discussion I: What Have We Learned Since October 1979’ PART VI POLICYMAKING: CHALLENGES FOR THE FUTURE 14. Mervyn King (1999), ‘Challenges for Monetary Policy: New and Old’ 15. Alan S. Blinder (2006), ‘Monetary Policy Today: Sixteen Questions and about Twelve Answers’ 16. John B. Taylor (2007), ‘Thirty Five Years of Model Building for Monetary Policy Evaluation: Breakthroughs, Dark Ages, and a Renaissance’ Name Index