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Price Stability as a Target for Monetary Policy: Defining and Maintaining Price Stability

In: The Monetary Transmission Process

Author

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  • Lars E. O. Svensson

Abstract

The purpose of this chapter is to provide an up-to-date discussion of monetary policy with ‘price stability’ as the primary objective. The chapter discusses how ‘price stability’ can be defined, and how price stability can be maintained in practice. It also discusses some lessons for the Eurosystem.

Suggested Citation

  • Lars E. O. Svensson, 2001. "Price Stability as a Target for Monetary Policy: Defining and Maintaining Price Stability," Palgrave Macmillan Books, in: Deutsche Bundesbank (ed.), The Monetary Transmission Process, chapter 2, pages 60-111, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-59599-6_3
    DOI: 10.1057/9780230595996_3
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    More about this item

    Keywords

    Monetary Policy; Central Bank; European Central Bank; Reaction Function; Price Stability;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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