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Monetary Policy Strategy: Lessons From The Crisis

  • Frederic S. Mishkin

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

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, October.
  • 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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