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La Nueva Síntesis Keynesiana: Análisis e Implicancias de Política Monetaria

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Author Info
Francisco Rosende () (Instituto de Economía. Pontificia Universidad Católica de Chile.)
Abstract

During the last decade, a new consensus has emerged among economists with respect to the way in which monetary policy should be conducted. According to this view, monetary policy should be focused in order to achieve a given inflation target. However, the assumption of some degree of short-run price inflexibility makes convenient the implementation an accommodative monetary policy, as a mechanism to stabilize the path of real output as well as the level of employment. Another important assumption underlying this view of monetary policy, is the hypothesis of instability of the demand for money. According to this, the key variable for monetary policy design is the level of short term interest rate. The aim of this paper is to undertake a critical survey of this approach. The first part of the paper exposes the key pillars on which the inflation targeting approach rests. In the second part, those assumptions are discussed.

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Publisher Info
Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.

Volume (Year): 39 (2002)
Issue (Month): 117 ()
Pages: 203-233
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Handle: RePEc:ioe:cuadec:v:39:y:2002:i:117:p:203-233

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Related research
Keywords: Monetary Policy; Inflation Targets;

Find related papers by JEL classification:
E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
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

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