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Monetary Policy Regimes: Functional Framework And Implications

Author

Listed:
  • CUHAL, Radu

    (National Bank of Moldova, Chişinău, Republic of Moldova)

  • STARIȚÎNA, Ludmila

    (National Bank of Moldova, Chişinău, Republic of Moldova)

  • BASISTÎI, Nicolae

    (National Bank of Moldova, Chişinău, Republic of Moldova)

Abstract

The contribution of this paper is the delineation of the concept of the “monetary regime”, which implies specification of a numerical target that commits the central bank to achieve the primary goal of the monetary policy. We considered that the monetary policy regimes represent an attempt to develop a proper framework of the monetary reaction function based on the different theoretical approaches of monetary transmission channels, from the practical point of view (Barro R., 1995; McCallum B., et al. 1999). The dynamics of the targeted indicator may serve also as an early shock indicator and provide a better foundation for policy-makers decisions. In this paper we propose to investigate the fundamental basis of different monetary policy regimes, a greater emphasis being put on the functional mechanism of each regime and its effects.

Suggested Citation

  • CUHAL, Radu & STARIȚÎNA, Ludmila & BASISTÎI, Nicolae, 2014. "Monetary Policy Regimes: Functional Framework And Implications," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 1(1), pages 92-100.
    • Handle: RePEc:vls:rojfme:v:1:y:2014:i:1:p:92-100
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Central bank; monetary policy regimes; inflation targeting; monetary transmission channels;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • 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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