Redefining Monetary Policy Limits: Towards an Expansion of its Role in Economic Development
AbstractThe current paradigm concedes a passive role to monetary policy on economic development. In fact, the almost exclusive objectives of moderating economic cyclical fluctuations and achieving price stability (in the short-, medium- and longterm) are considered the (only) means by which the central bank can facilitate the expansion of productive capacity. Contrary to this view, as a result of a critical and comprehensive review of the literature, the present work concludes that monetary policy can play an active role in real economy expansion, extending its powers to guide a financial intermediation process directed to economic, productive and social development.
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Bibliographic InfoArticle provided by Central Bank of Argentina, Economic Research Department in its journal Ensayos Económicos.
Volume (Year): 1 (2012)
Issue (Month): 67 (December)
central banks; crisis; economic development; financial system; macroprudential policy; monetary policy; social development;
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
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