IDEAS home Printed from https://ideas.repec.org/a/aio/aucsse/v1y2019i47p71-78.html
   My bibliography  Save this article

Considerations Regarding The Concept Of Monetary Policy

Author

Listed:
  • Monica-Ionelia Mărgărit

    (University of Craiova Faculty of Economics and Business Administration)

Abstract

This paper aims to make a conceptual analysis of the monetary policy notion by reviewing the literature regarding the concept of monetary policy, as well as, by highlighting the way in which monetary policy opinions have changed in time. Further, we presented the transmission mechanism of monetary policy together with the most important channels through which central banks, by using various monetary policy instruments, can affect the dynamics of aggregate demand and prices in the economy. The paper ends by reviewing the main objectives of central banks and their evolution in time.

Suggested Citation

  • Monica-Ionelia Mărgărit, 2019. "Considerations Regarding The Concept Of Monetary Policy," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(47), pages 71-78, November.
    • Handle: RePEc:aio:aucsse:v:1:y:2019:i:47:p:71-78
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/annals/v1_2019/009.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kenneth N. Kuttner & Patricia C. Mosser, 2002. "The monetary transmission mechanism: some answers and further questions," Economic Policy Review, Federal Reserve Bank of New York, vol. 8(May), pages 15-26.
    2. Allan H. Meltzer, 1995. "Money, Credit and Policy," Books, Edward Elgar Publishing, number 311.
    3. Sargent, Thomas J & Wallace, Neil, 1975. ""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 241-254, April.
    4. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, March.
    5. Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
    6. Kenneth Kuttner & Patricia Mosser, 2002. "The monetary transmission mechanism in the United States: some answers and further questions," BIS Papers chapters, in: Bank for International Settlements (ed.), Market functioning and central bank policy, volume 12, pages 433-443, Bank for International Settlements.
    7. Fischer, Stanley, 1977. "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 191-205, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    2. Robert G. King, 2000. "The new IS-LM model : language, logic, and limits," Economic Quarterly, Federal Reserve Bank of Richmond, issue Sum, pages 45-103.
    3. Fuhrer, Jeffrey C., 2010. "Inflation Persistence," Handbook of Monetary Economics, in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 9, pages 423-486, Elsevier.
    4. Issing Otmar & Wieland Volker, 2013. "Monetary Theory and Monetary Policy: Reflections on the Development over the last 150 Years," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(3), pages 423-445, June.
    5. C. A. E. Goodhart, 2009. "The Continuing Muddles of Monetary Theory: A Steadfast Refusal to Face Facts," Economica, London School of Economics and Political Science, vol. 76(s1), pages 821-830, October.
    6. N. G. Mankiw, 2009. "The Macroeconomist as Scientist and Engineer," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 5.
    7. Alan S. Blinder, 2019. "What does Jerome Powell know that William McChesney Martin didn’t—and what role did academic research play in that?," Working Papers 259, Princeton University, Department of Economics, Center for Economic Policy Studies..
    8. Frederick van der Ploeg, 2005. "Back to Keynes?," CESifo Economic Studies, CESifo Group, vol. 51(4), pages 777-822.
    9. Robert J. Shiller, 1980. "Can the Fed Control Real Interest Rates?," NBER Chapters, in: Rational Expectations and Economic Policy, pages 117-167, National Bureau of Economic Research, Inc.
    10. Armstrong, Christopher S. & Glaeser, Stephen & Kepler, John D., 2019. "Accounting quality and the transmission of monetary policy," Journal of Accounting and Economics, Elsevier, vol. 68(2).
    11. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611.
    12. Muhammad Ali Rizwan & Muhammad Zeeshan Younas & Hafiza Sadaf Zahra & Zartaj Jamil, 2020. "External Monetary Constraints Imposed by Developed Economies on Developing Economies: Empirical Evidence from Pakistan," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(1), pages 7-29, March.
    13. Willem H. Buiter, 2003. "James Tobin: An Appreciation of his Contribution to Economics," Economic Journal, Royal Economic Society, vol. 113(491), pages 585-631, November.
    14. Vallés Liberal, Javier & Viñals, José, 1999. "On the Real Effects of Monetary Policy: A Central Banker's View," CEPR Discussion Papers 2241, C.E.P.R. Discussion Papers.
    15. Alan S. Blinder, 2020. "What does Jerome Powell know that William McChesney Martin did not—And what role did academic research play in that?," Manchester School, University of Manchester, vol. 88(S1), pages 32-49, September.
    16. Robert H. Rasche & Marcela M. Williams, 2007. "The effectiveness of monetary policy," Review, Federal Reserve Bank of St. Louis, vol. 89(Sep), pages 447-490.
    17. Peter N. Ireland, 2005. "The monetary transmission mechanism," Working Papers 06-1, Federal Reserve Bank of Boston.
    18. Michael Paetz, 2007. "Robust Control and Persistence in the New Keynesian Economy," Quantitative Macroeconomics Working Papers 20711, Hamburg University, Department of Economics.
    19. Mai, Nhat Chi, 2016. "Monetary policies and the macroeconomic performance of Vietnam," OSF Preprints akzy4, Center for Open Science.
    20. Steinsson, Jon, 2003. "Optimal monetary policy in an economy with inflation persistence," Journal of Monetary Economics, Elsevier, vol. 50(7), pages 1425-1456, October.

    More about this item

    Keywords

    monetary policy; central banks; inflation targeting; monetary targeting;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:1:y:2019:i:47:p:71-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anca Bandoi (email available below). General contact details of provider: https://edirc.repec.org/data/fecraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.