Microeconomics and Monetary Economics
Abstract
In this article, basing on offensive lecturing research articles of famous authors on financial
instability and monetary policy, we propose as aim of this paper to discuss the controversial rule vs.
discretion in monetary policy and the new institutional framework of inflation targeting as a remedy
for inflationary pressures after the cause of the intermediate target of monetary anchors and exchange
rate policy, since the year 70's of the last Century. To do this, we treated a literature review in the field,
assigning the work of various economists thus handling of monetary policy favors the discretion/rule
to the new inflation target strategy in 90's and 2000. We put particular emphasis on the second step of
this paper on the possibility of inflation targeting as an anti-inflationary objective defended for its main
defendants.
References
Agenor, P.R. (2000a). Monetary Policy under Flexible Exchange Rates: An Introduction to Inflation
Targeting. World Bank, vol. 45, no.21, pp. 47-87.
Aglietta, M. (1990). Financial integration and monetary regime under the gold standard. Financial
Economics Review, vol. 14, no.3, pp. 26-36.
Artus, P. (2003). Why monetary policy does not respond to asset prices. Economy and prevision, vol.
158, no.3, pp. 61-72.
Ball, Laurence M. (1997). Policy rules for open economie. National Bureau for economic research,
January 1999, University of Chicago Press. Vol. ISBN. 0-226-79124-6, pp. 127-156.
Barro, R.J. & Gordon, D.B. (1983b). Rules, discretion and Reputation in a Model of Monetary Policy.
Journal of Monetary Economics, vol. 12, no.1, pp. 101-122.
Bernanke, B.S. & Gertler, M. (1999). Monetary Policy and Asset Price Volatility, in New Challenges
for Monetary Policy, Federal Reserve Bank of Kansas City. Economic Review, vol. 4, no.1, pp. 18-51.
Blackburn, K. & Christensen, M. (1989). Monetary policy and policy Credibility: Theory and Evidence.
Journal of Economic Literature, vol. 27, no. 1, pp. 16-17.
Cecchetti, Gemberg, Lipsky & Wadhwani. (2001). Asset Prices and Central Bank Policy, Genova
Reports on the world Economy 2, International Center for Monetary and Banking studies, Vol.10,
No.2, pp. 1-39.
Cecchetti, S. G. (1998). Policy Rules and Targets: Framing the Central Banker’s Problem. Economic
Policy Review, Federal Reserve Bank of New York, vol.13, no. 4, pp. 1-14.
*** (2010). Consens us Economics, Consensus Forecasts, January, 2010.
Croce, E. & Khan, M. (2000). Monetary Regimes and Inflation Targeting. International Monetary
Fund, Finance and Development, vol. 37, no. 2, pp. 48-51.
Fischer, S. (1994). Modern Central Banking, the future of central banking: tercentenary symposium of
the bank of England, F. Capie, C. Goodhart, S. Schnadt, Cambridge University Press, paper 0916.
Goodhart, C. & Huang, H. (1999). A model of the lender of last resort. IMF Working Paper, WP no.
599/39.
Guillard, M. (2002). Rules, discretion and credibility of monetary policy.Working Paper, University of
Evry, paper 32.
Henry, C. Simons (1936). Rules vs. Authories in Monetary policy. Journal of Political Economy,
vol.44, no. 2. p. 1.
Jbili, A. & Kramarenko, V. (2003). Should MENA Countries Float or Peg? International Monetary
Fund, Finance and Development, vol. 47, no. 2, pp. 30-33.
Keynes, John M. (1930). A Treatise on Money. London: MacMillan.
Kydland, F. & Prescott, E. (1977). Rules rather than discretion: the inconsistency of optimal plans.
Journal of Political Economy, vol. 85, no. 3, pp. 21-46.
Mishkin, F.S. (1999a). International Experiences with Different Monetary Policy Regimes. Journal of
Monetary Economics. vol. 43, no. 3, pp. 580-605.
Masson, P. Savastano & Sharma, S. (1997). The scope for inflation targeting in developing Countries,
International Monetary Fund. Working Paper, 97/130.
Mc Callum (2000). Alternative Monetary policy Rules: a comparison with historical setting for the
United States, the United Kingdom, and Japan. NBER, Working Paper Series 7725.
Mishkin, F.S. (2000b). Inflation Targeting in Emerging Market Countries, NBER, Working Paper,
7618.
Mishkin, F.S. & Posen, A.S. (1997). Inflation targeting: lessons from four countries, Federal Reserve
Bank of New York. Economic Policy Review, vol. 54, no. 3, pp. 159-178.
Poterba, Samwick et al. (1995). Stock Ownership Patterns, Stock Market Fluctuations, and
Consumption, Brooking Papers on Economic Activity. pp. 295-372.
Schaechter, M. R. Stone & Zelmer. (2000). Adopting Inflation Targeting: Practical for Emerging
Market Countries, International Monetary Fund Occasional, p. 202.
Svensson, L. (1996). Commentary: how should monetary policy respond to shocks while maintaining
long run price stability? Conceptual Issue, Achieving price stability F.R.B of Kansas City.
Taylor, J.B. (1993). Discretion vs. Policy Rules in Practice, Carnegie Rochester Conferences Series on
Public Policy (39), p. 195.
Targeting. World Bank, vol. 45, no.21, pp. 47-87.
Aglietta, M. (1990). Financial integration and monetary regime under the gold standard. Financial
Economics Review, vol. 14, no.3, pp. 26-36.
Artus, P. (2003). Why monetary policy does not respond to asset prices. Economy and prevision, vol.
158, no.3, pp. 61-72.
Ball, Laurence M. (1997). Policy rules for open economie. National Bureau for economic research,
January 1999, University of Chicago Press. Vol. ISBN. 0-226-79124-6, pp. 127-156.
Barro, R.J. & Gordon, D.B. (1983b). Rules, discretion and Reputation in a Model of Monetary Policy.
Journal of Monetary Economics, vol. 12, no.1, pp. 101-122.
Bernanke, B.S. & Gertler, M. (1999). Monetary Policy and Asset Price Volatility, in New Challenges
for Monetary Policy, Federal Reserve Bank of Kansas City. Economic Review, vol. 4, no.1, pp. 18-51.
Blackburn, K. & Christensen, M. (1989). Monetary policy and policy Credibility: Theory and Evidence.
Journal of Economic Literature, vol. 27, no. 1, pp. 16-17.
Cecchetti, Gemberg, Lipsky & Wadhwani. (2001). Asset Prices and Central Bank Policy, Genova
Reports on the world Economy 2, International Center for Monetary and Banking studies, Vol.10,
No.2, pp. 1-39.
Cecchetti, S. G. (1998). Policy Rules and Targets: Framing the Central Banker’s Problem. Economic
Policy Review, Federal Reserve Bank of New York, vol.13, no. 4, pp. 1-14.
*** (2010). Consens us Economics, Consensus Forecasts, January, 2010.
Croce, E. & Khan, M. (2000). Monetary Regimes and Inflation Targeting. International Monetary
Fund, Finance and Development, vol. 37, no. 2, pp. 48-51.
Fischer, S. (1994). Modern Central Banking, the future of central banking: tercentenary symposium of
the bank of England, F. Capie, C. Goodhart, S. Schnadt, Cambridge University Press, paper 0916.
Goodhart, C. & Huang, H. (1999). A model of the lender of last resort. IMF Working Paper, WP no.
599/39.
Guillard, M. (2002). Rules, discretion and credibility of monetary policy.Working Paper, University of
Evry, paper 32.
Henry, C. Simons (1936). Rules vs. Authories in Monetary policy. Journal of Political Economy,
vol.44, no. 2. p. 1.
Jbili, A. & Kramarenko, V. (2003). Should MENA Countries Float or Peg? International Monetary
Fund, Finance and Development, vol. 47, no. 2, pp. 30-33.
Keynes, John M. (1930). A Treatise on Money. London: MacMillan.
Kydland, F. & Prescott, E. (1977). Rules rather than discretion: the inconsistency of optimal plans.
Journal of Political Economy, vol. 85, no. 3, pp. 21-46.
Mishkin, F.S. (1999a). International Experiences with Different Monetary Policy Regimes. Journal of
Monetary Economics. vol. 43, no. 3, pp. 580-605.
Masson, P. Savastano & Sharma, S. (1997). The scope for inflation targeting in developing Countries,
International Monetary Fund. Working Paper, 97/130.
Mc Callum (2000). Alternative Monetary policy Rules: a comparison with historical setting for the
United States, the United Kingdom, and Japan. NBER, Working Paper Series 7725.
Mishkin, F.S. (2000b). Inflation Targeting in Emerging Market Countries, NBER, Working Paper,
7618.
Mishkin, F.S. & Posen, A.S. (1997). Inflation targeting: lessons from four countries, Federal Reserve
Bank of New York. Economic Policy Review, vol. 54, no. 3, pp. 159-178.
Poterba, Samwick et al. (1995). Stock Ownership Patterns, Stock Market Fluctuations, and
Consumption, Brooking Papers on Economic Activity. pp. 295-372.
Schaechter, M. R. Stone & Zelmer. (2000). Adopting Inflation Targeting: Practical for Emerging
Market Countries, International Monetary Fund Occasional, p. 202.
Svensson, L. (1996). Commentary: how should monetary policy respond to shocks while maintaining
long run price stability? Conceptual Issue, Achieving price stability F.R.B of Kansas City.
Taylor, J.B. (1993). Discretion vs. Policy Rules in Practice, Carnegie Rochester Conferences Series on
Public Policy (39), p. 195.
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Published
2021-05-28
How to Cite
Collective Authors. (2021). Microeconomics and Monetary Economics: Array. Acta Universitatis Danubius. Œconomica, 11(2). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1093
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