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Why does countercyclical monetary policy matter?

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  • Satyajit Chatterjee

Abstract

Satyajit Chatterjee outlines the mainstream view of the benefits of countercyclical monetary policy and the challenge posed to it by recent microfoundations-oriented research. He also considers how this challenge may alter our views about the benefits of countercyclical monetary policy.>

Suggested Citation

  • Satyajit Chatterjee, 2001. "Why does countercyclical monetary policy matter?," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 7-14.
    • Handle: RePEc:fip:fedpbr:y:2001:i:q2:p:7-14
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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/2001/q2/brq201sc.pdf
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    References listed on IDEAS

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    1. S. Rao Aiyagari, 1994. "Uninsured Idiosyncratic Risk and Aggregate Saving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 659-684.
    2. Bewley, Truman, 1977. "The permanent income hypothesis: A theoretical formulation," Journal of Economic Theory, Elsevier, vol. 16(2), pages 252-292, December.
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