Provocările politicii monetare

Dumitriu, Ramona and Stefanescu, Razvan (2013): Provocările politicii monetare.

Abstract

During the last decades, the monetary policy had to face significant changes caused by various processes. This paper explores the challenges induced by the recent global crisis to the central banks policies. We approach some possible solutions to the dramatic consequences of the crisis: the abandon of the monetarism and the return to Keynesian principles, orientation towards the full employment in detriment of the prices stability, a more intense coordination between fiscal and monetary policies and new regulations to prevent the banks involvement in asset price bubbles.

• Item Type: MPRA Paper
• English Title: Monetary policy challenges
• Language: Romanian
• Keywords: Monetary Policy, Global Crisis, Coordination between Policies, Macroeconomics Objectives
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination

References

Adam, K. & Billi, R. (2007), Monetary conservatism and fiscal policy, Working Paper 07-01, Federal Reserve Bank of Kansas City. (http://www.kc.frb.org/Publicat/Reswkpap/PDF/RWP07-01.pdf)

Agell, J. & Calmfors, L. & Jonsson, G. (1996), Fiscal policy when monetary policy is tied to the mast, European Economic Review 40, pp. 1413-1440.

Alesina, A. & Tabellini, G. (1987), Rules and discretion with non-coordinated monetary and fiscal policy, Economic Inquiry, Vol. XXV, October, pp. 619–630.

Andersen, M. & Schneider, T. (1986), Coordination of fiscal and monetary policy under different institutional arrangements, European Journal of Political Economy, pp. 182–196.

Angeloni, Ignazio & Faia, Ester (2009), Capital Regulation and Monetary Policy with Fragile Banks, Kiel Working Paper. (http://www.ecb.europa.eu/events/conferences/shared/pdf/cfs/angeloni.pdf)

Bayoumi, T. & Eichengreen, B.J. (1992), Is There a Conflict between EC Enlargement and European Monetary Unification?, Centre for Economic Policy Research Discussion Paper No. 646. (http://www.nber.org/papers/w3950)

Bean, C. & Paustian, M. & Penalver, A. & Taylor, T. (2010), Monetary Policy After the Fall, Federal Reserve Bank of Kansas City, Jackson Hole Symposium. (http://www.bis.org/review/r100901d.pdf)

Begg, David (1997), Monetary Policy during Transition: Progress and Pitfalls in Central and Eastern Europe, 1990-6, Oxford Review of Economic Policy, Special Issue: Economics of Transition in Eastern and Central Europe, pp. 33-46.

Benigno, P. & Woodford, M. (2003), Optimal monetary and fiscal policy: A linear quadratic approach, in M. Gertler and K. Rogoff (eds.), NBER Macroeconomics Annual, MIT Press, Cambridge, pp. 271-333.

Bernanke, B.S. & Gertler, M. (1999), Monetary Policy and Asset Price Volatility, Federal Reserve Bank of Kansas City conference New Challenges for Monetary Policy, Kansas City, pp. 77-128. (http://www.kc.frb.org/PUBLICAT/SYMPOS/1999/4q99bern.pdf)

Bernanke, B.S. & Gertler, M. (2001), Should Central Banks Respond to Movements in Asset Prices?, American Economic Review, Vol. 91, Papers and Proceedings, May, pp. 253-257. (http://www.nyu.edu/econ/user/gertlerm/assets.pdf)

Blanchard, O. (2000), Macroeconomics, Second Edition, Prentice Hall, New Jersey.

Blanchard, O. (2007), Adjustment within the Euro. The Difficult Case of Portugal, Portuguese Economic Journal, 6 (1), pp. 1–21. (http://www.ems.bbk.ac.uk/for_students/msc_econ/ETA2_EMEC025P/GZblanchard.pdf)

Blanchard, O. & Dell’Ariccia, G. & Mauro, P. (2010), Rethinking Macroeconomic Policy, IMF Staff Position Note, SPN/10/03. (http://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf)

Blinder, Alan, S. (1997), Is Government Too Political?, Foreign Affairs, 76(6), pp. 115–126.

Blinder, Alan, S. (1999), Central Banking in Theory and Practice, Cambridge: MIT Press.

Boivin, J. & Lane, T. & Meh, C. (2010), Should Monetary Policy Be Used to Counteract Financial Imbalances?, Bank of Canada Review, pp. 23-36. (http://www.bankofcanada.ca/wp-content/uploads/2010/09/boivin_summer10.pdf)

Bordo, Michael D. & Rockoff, Hugh (2013), Not Just the Great Contraction: Friedman and Schwartz's A Monetary History of the United States 1867 to 1960, American Economic Review 103, pp 61-65. (http://www.nber.org/papers/w18828)

Cacciatore, Matteo & Fiori, Giuseppe & Ghironi Fabio (2013), Market Deregulation and Optimal Monetary Policy in a Monetary Union, NBER Working Paper 19025. (http://www.nber.org/papers/w19025)

Calomiris, Charles (2009), Financial Innovation, Regulation and Reform, Cato Journal 29, pp.65-91.

Canova, F. & Gambetti, L. (2009), Structural Changes in the US Economy: Is There a Role for Monetary Policy?, Journal of Economic Dynamics & Control 33 (2), pp. 477–490. (http://www.crei.cat/people/canova/structural%20changes%20in%20the%20US%20economy.pdf)

Castellani, F. & Debrun, X. (2001), Central Bank Independence and the Design of Fiscal Institutions, International Finance, 8(1), pp. 87–117. (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=880855)

Cecchetti, S. & Genberg, H. & Lipsky, J. & Wadhwani, S. (2000), Asset Prices and Central Bank Policy, Geneva Reports on the World Economy, No 2, Centre for Economic Policy Research, London.

Connolly, B. (1996), EMU: Out of Place, Out of Time, Economic Affairs 16(3), pp. 33–35.

Coricelli, F. (2006), Monetary Transmission Mechanism in Central & Eastern Europe: Gliding on a Wind of Change, The Williamson Institute Working Paper 850. (http://wdi.umich.edu/files/publications/workingpapers/wp850.pdf)

Cukierman, A. (2006), Central Bank Independence and Monetary Policy Making Institutions: Past, Present, and Future, Journal Economía Chilena, Vol. 9, April, pp. 5-23. (http://www.tau.ac.il/~alexcuk/pdf/Past%20present%20and%20Future.pdf)

Curdia, V. & Woodford, M. (2009), Credit Spreads and Optimal Monetary Policy, Federal Reserve Bank of New York Staff Reports, No 385. (http://www.federalreserve.gov/events/conferences/fmmp2009/papers/Woodford-Curdia.pdf)

Devereux, Michael, B. & Engel, Charles (2003), Monetary Policy in the Open Economy Revisited: Price Setting and Exchange-Rate Flexibility, Review of Economic Studies, Oxford University Press, vol. 70(4), pp.765-783.

Darvas, Z. (2010), The Case for Reforming Euro Area Criteria, Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest Working Papers 1003. (http://econ.core.hu/file/download/mtdp/MTDP1022.pdf)

Dixit, A. & Lambertini, L. (2003), Interactions of Commitment and Discretion in Monetary and Fiscal Policies, American Economic Review, 93, pp. 1522-1542. (http://infoscience.epfl.ch/record/109469/files/Interactions_of_Commitment_and_Discretion_LL_final_postPrint.pdf)

Dornbusch, Rudiger & Fischer, Stanley (1990), Macroeconomics, McGraw-Hill, 5th ed., New York.

Dorruci, E. & McKay J. (2011), The International Monetary System after the Financial Crisis, ECB Occasional Paper 123. (http://www.ecb.europa.eu/pub/pdf/scpops/ecbocp123.pdf)

Duisenberg, W. (2003), Monetary and fiscal policy in the euro area, Introduction by Dr. Willem F. Duisenberg, President of the European Central Bank, at the International Monetary Conference, Berlin, 3 June 2003. (http://www.ecb.int/press/key/date/2003/html/sp030603.en.html)

Eickmeier, S. & Hofmann, B. (2010), Monetary Policy, Housing Booms, and Financial (Im)Balances, Macroeconomic Dynamics. (http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1178.pdf)

Ennis, Huberto, M. & Keister, Todd (2009), Bank Runs and Institutions: The Perils of Intervention, American Economic Review, 99 (4), pp. 1588 - 1607. (http://www2.econ.iastate.edu/faculty/bhattacharya/grad2009/keister.pdf)

Feldstein, M. (1997), The Costs and Benefits of Going from Low Inflation to Price Stability, in Romer, C.D. and Romer, D.H. (eds.), Reducing Inflation: Motivation and Strategy, University of Chicago Press, Chicago, pp. 123-166.

Fischer, S. (1994), Modern Central Banking, in Capie, F., Fischer, S., Goodhart, C. and Schnadt, N. (eds.), The Future of Central Banking: The Tercentenary Symposium of the Bank of England, Cambridge University Press, Cambridge, UK.

Fleming, J. M. (1962), Domestic financial policies under fixed and under floating exchange rates, Staff Paper, International Monetary Fund, Vol. 9, No. 3, pp. 369-379.

Flood, R.P. & Rose, A.K. (2002), Uncovered Interest Parity in Crisis, IMF Staff Paper, 49:2, pp. 252-266.

Forder, J. (1998), Central Bank Independence: Conceptual Clarifications and Interim Assessment. Oxford Economic Papers, 50(3), pp. 307–334.

Fratzscher, M. (2009), What explains global exchange rate movements during the financial crisis?, Journal of International Money and Finance, 28, pp. 1390-1407. (http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1060.pdf)

Friedman, Milton (1968), The Role of Monetary Policy, The American Economic Review, Vol. 58, No. 1. pp. 1-17. (http://links.jstor.org/sici?sici=0002-8282%28196803%2958%3A1%3C1%3ATROMP%3E2.0.CO%3B2-6)

Friedman, Milton & Schwartz, Anna (1963), Money and Business Cycles, Review of Economics and Statistics, 45(1), Part 2, Supplement, pp. 32–64, Reprinted in Schwartz, 1987, Money in Historical Perspective, ch. 2. (http://www.jstor.org/stable/j.ctt7s1vp)

Froot, K.A. & Thaler, R.H. (1990), Foreign Exchange. Journal of Economic Perspectives, 4:3, pp. 179-192.

Furfine, Craig (2001), The costs and benefits of moral suasion: Evidence from the rescue of long-term capital management, BIS Working Papers No 103. (http://www.bis.org/publ/work103.pdf)

Gambacorta, L. (2009), Monetary Policy and the Risk-Taking Channel, BIS Quarterly Review, December, pp. 43-53. (http://www.bis.org/publ/qtrpdf/r_qt0912f.pdf)

Goodfriend, Marvin & King, Robert G. (1988), Financial Deregulation, Monetary Policy, and Central Banking, Federal Reserve Bank of Richmond's Economic Review, 1988 Vol. 74, No. 3. (http://www.richmondfed.org/publications/research/working_papers/1988/wp_88-1.cfm)

Goodfriend, Marvin (2012), The Phases of U.S. Monetary Policy: 1987 to 2001. FRB Richmond Economic Quarterly, vol. 88, no. 4, Fall 2002, pp. 1-17. (http://ssrn.com/abstract=2183357)

Gruen, D. & Plumb, M. & Stone, A. (2005), How Should Monetary Policy Respond to Asset Price Bubbles?, International Journal of Central Banking, Vol. 1, December, pp. 1-31. (http://www.ijcb.org/journal/ijcb05q4a1.pdf)

Halpern, László & Wyplosz, Charles (1997), Equilibrium Exchange Rates in Transition Economies, International Monetary Fund Staff Papers, pp. 430-461.

Hayes, Mark (2006), The economics of Keynes: a New Guide to The General Theory, Cheltenham UK.

Hughes Hallett, A. & Libich, J. (2007), Fiscal-Monetary Interactions: The Effect of Fiscal Restraint and Public Monitoring on Central Bank Credibility, Open Economies Review, 18(5), pp. 559–576.

Keynes, John, Maynard (1936), The General Theory of Employment, Interest and Money, London: Macmillan (reprinted 2007).

Kishor, N. Kundan & Kochin, Levis A. (2004), The Success of the Fed and the Death of Monetarism. (http://ssrn.com/abstract=588031)

Koch, Elmar B. (1997), Exchange Rates and Monetary Policy in Central Europe – A Survey of Some Policy Issues, Oesterreichische Nationalbank Working Paper 24.

Koop, G. & Leon-Gonzalez, R. & Strachan, R. W. (2009) On the Evolution of the Monetary Policy Transmission Mechanism, Journal of Economic Dynamics & Control 33 (4), pp. 997–1017.

Krugman, P. (2009), The Return of Depression Economics and the Crisis of 2008, Norton, New York.

Lambertini, L. & Rovelli, R. (2004), Independent or Coordinated?, Monetary and Fiscal Policy in EMU, in Beetsma, R., et al. (eds), Monetary Policy, Fiscal Policies and Labour Markets: Macroeconomic Policymaking in the EMU, Cambridge, UK, Cambridge University Press, Ch.6.

Libich, J. & Hughes Hallett, A. & Stehlık, P. (2007), Monetary and Fiscal Policy Interaction with Various Degrees and Types of Commitment, Centre for Economic Policy Research, London, Discussion Paper No. 6586. (http://www.ecosoc.org.au/files/File/TAS/ACE07/presentations%20%28pdf%29/Libich.pdf)

Lucas, R.E. (1972), Expectations and the Neutrality of Money, Journal of Economic Theory, Vol. 4, April, pp. 103-124.

Mayer, Thomas & Duesenberry, James S. & Aliber, Robert Z. (1993), Money, Banking, and the Economy, 5th edition, W W Norton & Co. Inc.

McCallum, Bennett T. (1981), Monetarist Principles and the Money Stock Growth Rule NBER Working Paper No. w0630. (http://ssrn.com/abstract=27538)

McCallum, B.T. (1994), A Reconsideration of the Uncovered Interest Parity Relationship, Journal of Monetary Economics, 33:1, pp. 105-132.

McCallum, B. T. & Nelson, E. (2006), Monetary and Fiscal Theories of the Price Level: The Irreconcilable Differences, NBER Working Paper, No. 12089.

McCallum, Bennett, T. (2008), Monetarism, in David R. Henderson (ed.). Concise Encyclopedia of Economics, 2nd edition, Indianapolis.

Meier, A. (2009), Panacea, Curse, or Nonevent? Unconventional Monetary Policy in the United Kingdom, IMF Working Paper No. 09/163. (http://www.imf.org/external/pubs/ft/wp/2009/wp09163.pdf)

Melitz, J. (1987), Monetary Discipline, Germany, and the European Monetary System, IMF Working Paper No. 87/6.

Meredith, G., & Chinn, M.D. (1998), Long-horizon Uncovered Interest Rate Parity. NBER Working Paper, No.6797.

Miller, Roger, LeRoy & Van Hoose, David, D. (2009), Modern Money and Banking, McGraw Hill, 4th ed., New York.

Mishkin, F.S. (2007), Housing and the Monetary Transmission Mechanism, Finance and Economics Discussion Series, No. 2007-40, Board of Governors of the Federal Reserve System, Washington, September

Mishkin, F.S. (2009), Is Monetary Policy Effective During Financial Crises?, American Economic Review, No 99 (2), pp. 573-577. (http://www.nber.org/papers/w14678)

Mishkin, F.S. (2010), The Economics of Money, Banking, and Financial Markets, 9th edition, Addison-Wesley, Boston.

Mishkin, F.S. (2011), Monetary Policy Strategy: Lessons from the Crisis, Proceedings of the 6th ECB Central Banking Conference, Frankfurt, November 18-19, 2010. (http://www0.gsb.columbia.edu/faculty/fmishkin/papers/10ecb.pdf)

Mundell, Robert (1963), Capital Mobility and Stabilization Policy under Fixed and Flexible Exchange Rates, Canadian Journal of Economics and Political Science.

Nordhaus, W. (1994), Policy Games: Coordination and Independence in Monetary and Fiscal Policies, Brookings Papers on Economic Activity, 2, pp. 139–216.

Obstfeld, Maurice & Shambaugh, Jay C. & Taylor, Alan M. (2004), The Trilemma in History: Trade-offs Among Exchange Rates, Monetary Policies and Capital Mobility, CEPR Discussion Papers 4352, C.E.P.R. Discussion Papers. (http://elsa.berkeley.edu/~obstfeld/ost12.pdf)

Obstfeld, Maurice & Duarte, Margarida (2005), Monetary Policy in the Open Economy Revisited: The Case for Exchange-Rate Flexibility Restored, 2005 Meeting Papers 386, Society for Economic Dynamics. (http://emlab.berkeley.edu/users/obstfeld/DO_JIMF-2.pdf)

Obstfeld, Maurice & Shambaugh, Jay C. & Taylor, Alan M. (2009), Financial Instability, Reserves, and Central Bank Swap Lines in the Panic of 2008, American Economic Review: Papers and Proceedings, 99(2), pp. 480-486. (http://www.nber.org/papers/w14826.pdf?new_window=1)

Persson, M. & Persson, T. & Svensson, L. E. O. (2006), Time Consistency of Fiscal and Monetary Policy: A Solution, Econometrica, 74(1), pp. 193–212. (http://www.nber.org/papers/w11088)

Petit, M. L. (1989), Fiscal and Monetary Policy Co-ordination: A Differential Game Approach, Journal of Applied Econometrics, 4(2), pp. 161–79.

Phillips, A.W. (1958), The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957, Economica, Vol. 25, November, pp. 283-299.

Reinhart, C.M. & Rogoff, K.S. (2009), This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press, Princeton, NJ.

Samuelson, Paul & Nordhaus, William D. (2009), Economics: An Introductory Analysis, 19th ed., McGraw–Hill.

Taylor, J. (2007), Housing and Monetary Policy, Housing, Housing Finance and Monetary Policy, Federal Reserve Bank of Kansas City, Kansas City, pp. 463-476.

Turner, P. (2010), Central Banks and the Financial Crisis, BIS Papers, No 51, Bank for International Settlements, Basel, pp. 21-25. (http://www.bis.org/publ/bppdf/bispap51e.pdf)

Uhlig, H. (2005), What Are the Effects of Monetary Policy on Output? Results from an Agnostic Identification Procedure, Journal of Monetary Economics 52 (2), pp.381–419.

Way, Christopher (2000), Central Banks, Partisan Politics, and Macroeconomic Outcomes. Comparative Political Studies 33/2.: pp. 196-224.

Weisbrot, Mark & Montecino, Juan (2012), More Pain, No Gain for Greece: Is the Euro Worth the Costs of Pro-Cyclical Fiscal Policy and Internal Devaluation?, Center for Economic and Policy Research. (http://www.cepr.net/index.php/publications/reports/more-pain-no-gain-for-greece)

Wessel, D. (2009), In Fed We Trust: Ben Bernanke’s War on the Great Panic, Crown Business, New York.

White, W.R. (2009), Should Monetary Policy ‘Lean or Clean’?, Federal Reserve Bank of Dallas Working Paper, No 34, August. (https://www.ifk-cfs.de/fileadmin/downloads/events/colloquium/2009-05-27_White.pdf)

Williamson, John (1991), Advice on the Choice of an Exchange Rate Policy, in Exchange Rate Policies in Developing and Post-Socialist Countries, E. M. Claassen, ed., ICS Press, pp. 395-403.

Williamson, Stephen D. & Wright, Randall D. (2010), New Monetarist Economics: Models, Federal Reserve Bank of Minneapolis Staff Report 443. (http://ssrn.com/abstract=1601510)