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Making monetary policy: what do we know and when do we know it?

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  • Anthony M. Santomero

Abstract

President Anthony Santomero points out that conducting a successful monetary policy presents real-world challenges, such as evaluating where the economy is, where it is going, and where it should be going. But how do monetary policymakers make decisions about the economy in a world with imperfect information? Santomero discusses how policymaking is affected by both the availability and reliability of economic information. He concludes that given the information constraints policymakers face, the challenges of setting monetary policy will not go away, so we must find a way to meet them

Suggested Citation

  • Anthony M. Santomero, 2005. "Making monetary policy: what do we know and when do we know it?," Business Review, Federal Reserve Bank of Philadelphia, issue Q4, pages 1-8.
    • Handle: RePEc:fip:fedpbr:y:2005:i:q4:p:1-8
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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/2005/q4/Q4_05_MonPolicy.pdf
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    References listed on IDEAS

    as
    1. Athanasios Orphanides & Simon van Norden, 2002. "The Unreliability of Output-Gap Estimates in Real Time," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 569-583, November.
    2. Dean Croushore & Tom Stark, 2002. "Is macroeconomic research robust to alternative data sets?," Working Papers 02-3, Federal Reserve Bank of Philadelphia.
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