IDEAS home Printed from https://ideas.repec.org/a/avo/emipdu/v23y2014i1p233-246.html
   My bibliography  Save this article

Monetary Policy: Central Bank Transparency And Inflation Targeting

Author

Listed:
  • Djuro Benic

    (University of Dubrovnik)

Abstract

The aim of monetary policy is to ensure the long-term price stability and short-term assistance in the stabilization of cyclical output movements. Monetary policy actions must avoid the time inconsistency problems and possible tendencies of economic policy makers regarding inflation so as to increase the aggregate demand and output. Acceptance of established rules instead of discretion in the 1980s proved to be insufficiently successful due to several reasons. The question that arises is determining the direction of monetary policy actions to achieve the abovementioned objectives and to avoid problems. The need for responsible activities of central bank, along with independence, transparency, and inflation targeting as nominal anchor, is considered and determined in the paper as a possible direction which leads to efficiency.

Suggested Citation

  • Djuro Benic, 2014. "Monetary Policy: Central Bank Transparency And Inflation Targeting," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 23(1), pages 233-246, june.
    • Handle: RePEc:avo:emipdu:v:23:y:2014:i:1:p:233-246
    as

    Download full text from publisher

    File URL: https://hrcak.srce.hr/clanak/182466
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    monetary policy; time inconsistency; central bank; transparency; nominal anchor;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

    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:avo:emipdu:v:23:y:2014:i:1:p:233-246. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Nebojsa Stojcic (email available below). General contact details of provider: https://edirc.repec.org/data/oedubhr.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.