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Monetary Policy Strategy: Lessons From The Crisis

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  • Frederic S. Mishkin

    (Graduate School of Business, Columbia University, and National Bureau of Economic Research)

Abstract

This paper examines what we have learned about monetary policy strategy and considers how we should change our thinking in this regard in the aftermath of the 2007-09 financial crisis. It starts with a discussion of where the science of monetary policy stood before the crisis and how central banks viewed monetary policy strategy. It then examines how the crisis has changed the thinking of both macro/monetary economists and central bankers. Finally, it looks at the extent to which the science of monetary policy needs to be altered and draws implications for monetary policy strategy.

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This chapter was published in:

  • Marek Jarocinski & Frank Smets & Christian Thimann (ed.), 2011. "Approaches to monetary policy revisited - lessons from the crisis, 6th ECB Central Banking Conference, 18-19 November 2010," Books, European Central Bank, number cbc6.
    This item is provided by European Central Bank in its series Chapters with number cbc6-03.

    Handle: RePEc:ecb:chaptr:cbc6-03

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    1. Po co bankom centralnym cel inflacyjny
      by k.mokrzycka in Obserwator Finansowy on 2012-02-27 05:29:46
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    Cited by:
    1. Hanna Samaryna & Jakob de Haan, 2011. "Right on Target: Exploring the Determinants of Inflation Targeting Adoption," DNB Working Papers 321, Netherlands Central Bank, Research Department.
    2. £ukasz Goczek, 2011. "Federal policy responses to the 2007-2009 credit crunch in the US," Equilibrium, Wydawnictwo Naukowe Uniwersytetu Mikolaja Kopernika, vol. 6, pages 27-42.
    3. Riccardo Cristadoro & Giovanni Veronese, 2011. "Policy Focus: Monetary policy in India: is something amiss?," Indian Growth and Development Review, Emerald Group Publishing, vol. 4(2), pages 166-190, September.
    4. Stan du Plessis, 2012. "Assets matter: New and old views of monetary policy," Working Papers 16/2012, Stellenbosch University, Department of Economics.
    5. Nerina Reyna & Carlos F. Suárez Dóriga & Matías Vicens, 2011. "Monetary Policy of Main Central Banks During the 2007-2011 Crisis," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(61-62), pages 189-249, January -.

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