A leading academic authority and policymaker discusses monetary policy
strategy from the perspectives of both scholar and practitioner,
offering theory, econometric evidence, and extensive case studies.
This book by a leading authority on monetary policy offers a unique view
of the subject from the perspectives of both scholar and practitioner.
Frederic Mishkin is not only an academic expert in the field but also a
high-level policymaker. He is especially well positioned to discuss the
changes in the conduct of monetary policy in recent years, in particular
the turn to inflation targeting. Monetary Policy Strategy describes
his work over the last ten years, offering published papers, new
introductory material, and a summing up, "Everything You Wanted to Know
about Monetary Policy Strategy, But Were Afraid to Ask," which reflects
on what we have learned about monetary policy over the last thirty
years. Mishkin blends theory, econometric evidence, and extensive case
studies of monetary policy in advanced and emerging market and
transition economies. Throughout, his focus is on these key areas: the
importance of price stability and a nominal anchor; fiscal and financial
preconditions for achieving price stability; central bank independence
as an additional precondition; central bank accountability; the
rationale for inflation targeting; the optimal inflation target; central
bank transparency and communication; and the role of asset prices in
monetary policy.
