IDEAS home Printed from https://ideas.repec.org/a/eee/jmacro/v13y1991i4p573-596.html
   My bibliography  Save this article

Conducting monetary policy without a nominal anchor

Author

Listed:
  • Reinhart, Vincent

Abstract

The analysis of a simple macro model with forward-looking expectations suggests that a monetary authority can operate a stable and determinate gradualist interest rate policy only as long as concern for inflation is teamed with monitoring other indicators, supporting the policy eclecticism of the recent Monetary Policy Report to Congress. In general, an interest rate-smoothing rule cannot be based solely on relative prices or rates of return, including relative commodity prices and the slope of the yield curve, or respond solely to real magnitudes, such as the output gap. Any of these indicator variables, however, complement the use of an inflation target.

Suggested Citation

  • Reinhart, Vincent, 1991. "Conducting monetary policy without a nominal anchor," Journal of Macroeconomics, Elsevier, vol. 13(4), pages 573-596.
    • Handle: RePEc:eee:jmacro:v:13:y:1991:i:4:p:573-596
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0164-0704(05)80014-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vincent Reinhart, 2003. "Making monetary policy in an uncertain world," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 265-274.

    More about this item

    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:eee:jmacro:v:13:y:1991:i:4:p:573-596. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622617 .

    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.