Frederick Mishkin has presented a superb history of monetary policy in the sample chapter of his book – Monetary Policy Strategy. Much of it is already known so is a useful quick read.
This entry was posted on May 12, 2009 at 2:40 pm and is filed under Academic research & research papers, Central Banks / Monetary Policy, Economics - macro, micro etc, Economist. You can follow any responses to this entry through the RSS 2.0 feed.
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[...] banks. It is from Riksbank economists so the focus is on Sweden but is a good read. It is like this Mishkin chapter but has some more ideas on inflation targeting. [...]
Briefly, monetary policy (MP) evolved because of the limitations and problems of the use of Fiscal Policy (FP)
MP has been in use even before WWI, but has been popularised by Milton Friedman when governments run out of money to pursue expansionary FP.
So the obvious thing to do is to print money. Hence expansionary MP.
(This is my summary of the history of MP when we conduct economics tuition lessons in Singapore)
Do correct me if I’m wrong folks.
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