Monetary policy uncovered: Theory and practice

International Review of Applied Economics

Volumn 18, Issue 1, 2004, Pages 25-41

  Fontana, Giuseppe ^a   Palacio Vera, Alfonso ^b  

^a UNIVERSITY OF LEEDS   (United Kingdom)

^b UNIVERSIDAD COMPLUTENSE DE MADRID   (Spain)

Author keywords

Endogenous money; Monetary policy; Poole's approach; Post Keynesian economics

Indexed keywords

BANKING; CENTRAL BANK; INTEREST RATE; MONETARY POLICY; THEORETICAL STUDY;

EID: 1142280993     PISSN: 02692171     EISSN: None     Source Type: Journal    
DOI: 10.1080/0269217032000148627     Document Type: Article

References (70)

1. Arestis, P. & Howells, P. (1992) Institutional developments and the effectiveness of monetary policy, Journal of Economic Issues, 26(1), pp. 135-157.
2. Arestis, P. & Sawyer, M. (2002) The Bank of England macroeconomic model: its nature and implications, Journal of Post Keynesian Economics, Summer, 24(4), pp. 529-45.
3. Bank of England (1999) The transmission mechanism of monetary policy, Bank of England Quarterly Bulletin, 39(2), pp. 1-12.
4. Bernanke, B. S. (1996) What does the Bundesbank target?, National Bureau of Economic Research, Working Paper No. 5764, Cambridge, MA.
5. Bernanke, B. S., Laubach, T., Mishkin, F. S. & Posen, A. S.(1999) Inflation Targeting: Lessons from the International Experience (Princeton: Princeton University Press).
6. Blinder, A. S. (1997) What central bankers could learn from academics - and vice versa, Journal of Economic Perspectives, 11(2), pp. 3-19.
7. Blinder, A. S. (1998) Central Banking in Theory and Practice (Cambridge, MA: MIT Press).
8. Chick, V. (1995 [orig. 1986]) The evolution of the banking system and the theory of saving, investment and interest, in: M. Musella & C. Panico (Eds) The Money Supply in the Economic Process: A Post Keynesian Perspective, pp. 412-27 (Cheltenham and Brookfield: Edward Elgar).
9. Clarida, R., Gali, J. & Gertler, M. (1999) The science of monetary policy: a New Keynesian perspective, Journal of Economic Literature, 37(4), pp. 1661-1707.
10. Cramp, A. B. (1970) Does money matter?, Lloyds Bank Review, 98 October, pp. 23-37.
11. Cukierman, A. (1991) Why does the Fed smooth interest rates? in: M. T. Belongia (Ed), Monetary Policy on the 75th Anniversary at the Federal Reserve System,, Proceedings of the Fourteenth Annual Economic Policy Conference of the Federal Reserve Bank of St. Louis, pp. 111-147 (Dordrecht: Kluwer Academic).
12. Dalziel, P. (2002) The triumph of Keynes: what now for monetary policy research?, Journal of Post Keynesian Economics,, Summer, 24(4), pp. 511-527.
13. Davidson, P. (1990a [orig. 1965]) Keynes's finance motive, in L. Davidson (Ed) Money and Employment, The Collected Writings of Paul Davidson vol. 1, pp. 11-31 (New York, New York University Press).
14. Davidson, P. (1990b [orig. 1988]) Endogenous money, the production process, and inflation analysis, in L. Davidson (Ed) Money and Employment, The Collected Writings of Paul Davidson vol. 1, pp. 374-88 (New York: New York University Press).
15. De Cecco, M. (Ed.) (1987) Changing Money: Financial Innovation in Developed Countries (Oxford: Basil Blackwell).
16. De Long, J. B. (2000) The triumph of monetarism?, Journal of Economic Perspectives, 14(1), pp. 83-94.
17. Dow, S. C. (1993) Money and the Economic Process (Cheltenham, UK: Edward Elgar).
18. Earley, J. S. & Evans, G. R. (1982) The problem is bank liability management, Challenge, 24(6), pp. 54-56.
19. Estrella, A. & Mishkin, F. S. (1997) Is there a role for monetary aggregates in the conduct of monetary policy?, Journal of Monetary Economics, 40(2), pp. 279-304.
20. Evans, G. R. (1984) The evolution of financial institutions and the ineffectiveness of modern monetary policy, Journal of Economic Issues, 18(2), pp. 439-448.
21. European Central Bank (2001) The Monetary Policy of the ECB, Internet document www.ecb.de/pub/pdf/monetarypolicy2001.pdf.
22. Federal Reserve Board (1996) A guide to FRB/US: a macroeconomic model of the United States, Fed Division of Research and Statistics, October.
23. Fontana, G. (2000) Post Keynesians and Circuitists on money and uncertainty: an attempt at generality, Journal of Post Keynesian Economics, 23(1), pp. 27-48.
24. Fontana, G. (2003) Keynes's A Treatise on Money, in J. King (Ed) Elgar Companion to Post Keynesian Economics (Cheltenham, UK: Edward Elgar).
25. Friedman, M. (1982) Monetary policy: theory and practice, Journal of Money, Credit and Banking, 14(1), pp. 100-118.
26. Friedman, B. M. (1984) Lessons from the 1979-82 monetary policy experiment, American Economic Review, 74(2), pp. 382-387.
27. Friedman, B. M. (1988) Lessons on monetary policy from the 1980s, Journal of Economic Perspectives, 2(3), pp. 51-72.
28. Friedman, B. M. (1990) Targets and instruments of monetary policy, in B. M. Friedman & F. H. Hahn (Eds), Handbook of Monetary Economics, pp. 1185-230 vol. II (Amsterdam: Elsevier Science BV).
29. Friedman, B. M. & Kuttner, K. N. (1992) Money, income, prices and interest rates, American Economic Review, 82(3), pp. 472-492.
30. Friedman, B. M. & Kuttner, K. N. 1996) A price target for U.S. monetary policy? Lessons from the experience with money growth targets, Brookings Papers on Economic Activity, (1), pp. 77-146.
31. Friedman, M. & Schwartz, A. J. (1963) A Monetary History of the United States, 1867-1960 (Princeton: Princeton University Press)
32. Goodfriend, M. (1991) Interest rates and the conduct of monetary policy, Carnegie-Rochester Conference Series on Public Policy, 34(1), pp. 7-30.
33. Goodhart, C. A. E. (1984) Monetary Theory and Practice: The UK Experience (London: Macmillan).
34. Goodhart, C. A. E. (1986) Financial innovation and monetary control, Oxford Review of Economic Policy, 2(4), pp. 79-102.
35. Goodhart, C. A. E. (1989) The conduct of monetary policy, Economic Journal, 99(396), pp. 293-346.
36. Goodhart, C. A. E. (1994) What should central banks do? What should be their macroeconomic objectives and operations? Economic Journal, 104(435), pp. 1424-1436.
37. Goodhart, C. A. E. (1995) Money supply control: base or interest rates, in C. A. E. Goodhart, The Central Bank and the Financial System, pp. 249-262 (London: Macmillan).
38. Goodhart, C. A. E. (2002) The endogeneity of money, in: P. Arestis, M. Desai & S. C. Dow (Eds)Money, Macroeconomics and Keynes: Essays in Honour Victoria Chick vol, 1, pp. 14-24 (London, Routledge).
39. Hester, D. D. (1981) Innovations and monetary control, Brookings Papers on Economic Activity, (1), pp. 141-199.
40. Hoover, K. D. (1991) The causal direction between money and prices, Journal of Monetary Economics, 27(3), pp. 381-423.
41. Howells, P. & Hussein, K. A. (1999) The demand for bank loans and the 'state of trade', Journal of Post Keynesian Economics, 21(3), pp. 441-454.
42. Kaldor, N. (1985) How monetarism failed, Challenge, 28(2), pp. 4-13.
43. Kaldor, N. & Trevithick, J. (1981) A Keynesian perspective on money, Lloyds Bank Review, (139), January, pp. 1-19.
44. Laidler, D. (2002) The transmission mechanism with endogenous money, in: P. Arestis, M. Desai & S. C. Dow (Eds) Money, Macroeconomics and Keynes: Essays in Honour of Victoria Chick vol. 1, pp. 25-34 (London: Routledge).
45. McDonough, W. J. (1997) A framework for the pursuit of price stability, FRBNY Economic Policy Review,, August, pp. 1-7.
46. Minsky, H. P. (1982) Can 'It' Happen Again? Essays on Instability and Finance (Armonk: M.E. Sharpe)
47. Mishkin, F. S. (1998) The Economics of Money, Banking, and Financial Markets, 5th edn (Harlow: Addison Wesley).
48. Modigliani, F., Rasche, R. & Cooper, J. P. (1970) Central bank policy, the money supply, and the short-term rate of interest, Journal of Money, Credit and Banking, 2(2), pp. 166-218.
49. Moore, B. J. (1988) Horizontalists and Verticalists: The Macroeconomics of Credit Money (Cambridge: Cambridge University Press).
50. Moore, B. J. (1998) Accommodationism versus structuralism: a note, Journal of Post Keynesian Economics, 21(1), pp. 175-178.
51. Niggle, C. J. (1990) The evolution of money, financial institutions, and monetary economics, Journal of Economic Issues, 24(2), pp. 443-450.
52. Niggle, C. J. (1991) The endogenous money supply theory: an institutionalist appraisal, Journal of Economic Issues, 25(1), pp. 137-151.
53. Palacio-Vera, A. (2001) The endogenous money hypothesis: some evidence from Spain (1987-1998), Journal of Post Keynesian Economics, 23(3), pp. 509-526.
54. Palley, T. I. (1996a) Accommodationism versus structuralism: time for accommodation, Journal of Post Keynesian Economics, 18(4), pp. 585-594.
55. Palley, T. I. (1996b) Post Keynesian Economics: Debt, Distribution and the Macro Economy (London: Macmillan).
56. Palley, T. I. (1998) Accommodationism, structuralism, and superstructuralism, Journal of Post Keynesian Economics, 21(1), pp. 171-173.
57. Palley, T. I. (2002) Endogenous money: what it is and why it matters, Metroeconomica, 53(2), pp. 152-180.
58. Pianalto, S. (2001) Monetary policy with humility, Federal Reserve Bank of Cleveland Economic Commentary, May, pp. 1-5.
59. Pierce, J. L. (1984) Did financial innovation hurt the great monetarist experiment?, American Economic Review, Papers and Proceedings, 74(2), pp. 392-396.
60. Podolski, T. M. (1986) Financial innovation and the Money Supply (Oxford: Basil Blackwell).
61. Pollin, R. (1991) Two theories of money supply endogeneity: some empirical evidence, Journal of Post Keynesian Economics, 13(3), pp. 366-395.
62. Pollin, R. & Schaberg, M. (1998) Asset exchanges, financial markets trading and the M1 income velocity puzzle, Journal of Post Keynesian Economics, 21(1), pp. 135-162.
63. Poole, W. (1970) Optimal choice of monetary policy instruments in a simple stochastic macro model, Quarterly Journal of Economics, 84(2), pp. 197-216.
64. Porter, R, D., Simpson, T. D. & Mauskopf, E. (1979) Financial innovation and the monetary aggregates, Brookings Papers on Economic Activity, 1, pp. 213-229.
65. Rochon, L. P. (1999) Credit, Money and Production: An Alternative Post-Keynesian Approach (Cheltenham, UK: Edward Elgar).
66. Sawyer, M. (2002) Money, interest rates and unemployment: reflections on changes in Keynes's analysis, Mimeo, University of Leeds, November.
67. Taylor, J. B. (1995) The monetary transmission mechanism: an empirical framework, Journal of Economic Perspectives, 9(4), pp. 11-26.
68. Volcker, P. A. (2002) Monetary policy transmission: past and future challenges, FRBNY Economic Policy Review, May, pp. 1-5.
69. Wray, L. R. (1990) Money and Credit in Capitalist Economies: The Endogenous Money Approach (Aldershot: Edward Elgar).
70. Wray, L. R. (1998) Understanding Modern Money: The Key to Full Employment and Price Stability (Cheltenham: Edward Elgar).