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Redefining Monetary Policy Limits: Towards an Expansion of its Role in Economic Development

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  • Mariano Beltrani

    ()
    (University of Buenos Aires)

  • Juan Cuattromo

    ()
    (University of Buenos Aires)

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    Abstract

    The 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 Info

    Article provided by Central Bank of Argentina, Economic Research Department in its journal Ensayos Económicos.

    Volume (Year): 1 (2012)
    Issue (Month): 67 (December)
    Pages: 121-168

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    Handle: RePEc:bcr:ensayo:v:1:y:2012:i:67:p:121-168

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    Keywords: central banks; crisis; economic development; financial system; macroprudential policy; monetary policy; social development;

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    References

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