IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Geldpolitik bei Unsicherheit (Monetary Policy Under Uncertainty)

Listed author(s):
  • Heinz-Peter Spahn


    (Universitaet Hohenheim)

"Uncertainty" indicated a critical post Keynesian argument against neoclassical monetarism, but was taken up by the European Central Bank (ECB) in order to emphasize the importance of the money supply indicator in its "two pillar" strategy. In a state of model uncertainty on behalf of market and policy agents, the quantity of money is meant to control long-term inflation expectations. However, the instability of money demand and the intention to reject the responsibility for the cycle leads the ECB to modify the quantity theory towards a credit theory of nominal income. The ECB decides on the validity of the money-inflation nexus in a discretionary way and thus undermines the credibility of the monetary pillar. Lack of information is also offered in order to defend the ECB’s single price-stability target. Following only this target is suboptimal on welfare-theoretic grounds as the ECB indirectly accepts the non-neutrality of money.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Edward Elgar Publishing in its journal Intervention. European Journal of Economics and Economic Policies (subtitle initially: Zeitschrift fuer Oekonomie / Journal of Economics).

Volume (Year): 4 (2007)
Issue (Month): 1 ()
Pages: 121-143

in new window

Handle: RePEc:elg:ejeepi:v:4:y:2007:i:1:p:121-143
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:elg:ejeepi:v:4:y:2007:i:1:p:121-143. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Craven)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.