11 research outputs found
The Real (Social) Experience of Monetary Policy
This paper takes a socio-economic approach to considering money in relation to real experience, focusing on the real effects of monetary policy. While most of the economics literature focuses on interest-rate setting as the core tool of monetary policy, we focus here instead on signalling by the central bank as a mechanism for influencing expectations and behaviour in conditions of uncertainty. This involves addressing the social-conventional expectations among different groups (a mechanism for dealing with uncertainty) applied to their particular ways of framing the real and financial sectors. Actual credit conditions faced by borrowers in turn are the outcome of the conventional view among banks as a result of their framing and the influence of central bank signalling. These relations between central banks, banks and the non-bank public in turn normally rest on long-established relations of trust. We consider the real effects of monetary policy in circumstances where trust has broken down
Price Stability and the Origins and Early Influence of the Phillips Curve on British Policy Debates
The evolution of monetary policy (goals and targets) in Western Europe
This chapter charts the evolution of monetary policy in the United
Kingdom, France, and Germany since the late nineteenth century. It
shows how the monetary authorities in the three largest European
economies transitioned from the classical gold standard through the gold
exchange standard and the Bretton Woods regime to European Monetary
Union, while dealing with war, reconstruction, and inflation along the
way. It outlines the changing goals of monetary policy and the targets,
instruments, and devices deployed to achieve those goals. In doing so,
it highlights the constraints within which policy makers operated under
different monetary regimes