A01=Michael Woodford
Aggregate demand
Aggregate expenditure
Aggregate supply
Approximation
Author_Michael Woodford
Calculation
Category=KCBM
Central bank
Coefficient
Currency
Demand curve
Determinacy
Determinant
Economic equilibrium
Economics
Economy
Eigenvalues and eigenvectors
Elasticity of substitution
eq_bestseller
eq_business-finance-law
eq_isMigrated=1
eq_isMigrated=2
eq_nobargain
eq_non-fiction
Estimation
Expected value
Expenditure
Federal funds rate
Fiscal policy
Forecasting
Impulse response
Income
Indexation
Inflation
Inflation targeting
Initial condition
Interest
Interest rate
Investment
Lagrange multiplier
Long run and short run
Loss function
Marginal cost
Marginal utility
Market liquidity
Market power
Markup (business)
Mathematical optimization
Monetary base
Monetary policy
Monetary transmission mechanism
Money supply
New Keynesian economics
Nominal interest rate
Nominal rigidity
Output gap
Phillips curve
Present value
Price Change
Price index
Price level
Pricing
Quantity
Real interest rate
Real Rate Of Return
Real versus nominal value (economics)
Real wages
Relative price
Requirement
Stabilization policy
Stochastic discount factor
Stochastic process
Supply (economics)
Tax rate
Taylor rule
Time preference
Trade-off
Utility
Product details
- ISBN 9780691010496
- Weight: 1247g
- Dimensions: 152 x 235mm
- Publication Date: 07 Sep 2003
- Publisher: Princeton University Press
- Publication City/Country: US
- Product Form: Hardback
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With the collapse of the Bretton Woods system, any pretense of a connection of the world's currencies to any real commodity has been abandoned. Yet since the 1980s, most central banks have abandoned money-growth targets as practical guidelines for monetary policy as well. How then can pure "fiat" currencies be managed so as to create confidence in the stability of national units of account? Interest and Prices seeks to provide theoretical foundations for a rule-based approach to monetary policy suitable for a world of instant communications and ever more efficient financial markets. In such a world, effective monetary policy requires that central banks construct a conscious and articulate account of what they are doing. Michael Woodford reexamines the foundations of monetary economics, and shows how interest-rate policy can be used to achieve an inflation target in the absence of either commodity backing or control of a monetary aggregate.
The book further shows how the tools of modern macroeconomic theory can be used to design an optimal inflation-targeting regime--one that balances stabilization goals with the pursuit of price stability in a way that is grounded in an explicit welfare analysis, and that takes account of the "New Classical" critique of traditional policy evaluation exercises. It thus argues that rule-based policymaking need not mean adherence to a rigid framework unrelated to stabilization objectives for the sake of credibility, while at the same time showing the advantages of rule-based over purely discretionary policymaking.
Michael Woodford is the Harold H. Helm '20 Professor of Economics and Banking at Princeton University. He is the coeditor, with John B. Taylor, of "The Handbook of Macroeconomics".
