Is Central Banking an Art?
Abstract
During the past few years, central bankers appear to have shifted their core mission to what we call Keynesian Monetarism whose theoretical foundation was provided by the Phillips Curve. They adopted a policy of low-interest rates in an attempt to stimulate aggregate demand, resulting in a higher level of output. It has been several years since the financial crisis and the adoption of the so-called Keynesian Monetarism and the data needed to evaluate the effectiveness of these policies are beginning to accumulate. The best that the proponents of the policy may claim is that the policies prevented a worldwide depression. However, the accumulated data also point to a very tepid recovery in the developed ...
Get Economic Disturbances and Equilibrium in an Integrated Global Economy now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
