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Monetary Policy Strategy: Lessons from the Crisis

  • Frederic S. Mishkin

This paper examines what we have learned and how we should change our thinking about monetary policy strategy in the aftermath of the 2007-2009 financial crisis. It starts with a discussion of where the science of monetary policy was before the crisis and how central banks viewed monetary policy strategy. It will then examine how the crisis has changed the thinking of both macro/monetary economists and central bankers. Finally, it looks how much of the science of monetary policy needs to be altered and draws implications for monetary policy strategy.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16755.

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Date of creation: Feb 2011
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Publication status: published as in "Approaches to monetary policy revisited - lessons from the crisis," 6th ECB Central Banking Conference, 18-19 November 2010
Handle: RePEc:nbr:nberwo:16755
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