Since the Bank of England was made independent in 1997, the conduct of monetary policy has been relatively uncontroversial. The debates between Keyneisans, monetarists and supporters of fixed exchange rate mechanisms now appear very distant. Despite the apparent consensus there are many issues related to the conduct of monetary policy that are not yet settled and which will soon come to the fore. Is the current form of independence for the Bank of England appropriate? Should a central bank target inflation or the prices level? How does a central bank deal with asset price deflation? Should more account be taken of monetary aggregates? Should central banks target asset prices? What is the relationship between the money supply and asset price inflation? How should central banks ensure financial stability? The IEA was at the forefront of changing the parameters of the debate surrounding monetary policy in the 1970s and 1980s. This text, brings together some of the leading authors in the field, including the current Governor of the Bank of England, to discuss current issues in monetary policy and the relationship between monetary policy and financial markets. It is appropriate for undergraduates and postgraduates in economics and finance as well as for practitioners in financial markets.

Kent Matthews; Philip Booth; Tim Congdon; Gordon T. Pepper; Mervyn A. King; David B. Smith; Andrew Lilico; Keith Pilbeam; Patrick Minford; Kevin Dowd; Forrest Capie; Geoffrey Wood

edited by Kent Matthews, Philip Booth

London Publishing Partnership

Philip Booth; Kent Matthews

Institute Of Economic Affairs

Spectrum Publications

Halsted Press

Chichester, West Sussex, England, England, 2006

United States, United States of America

Chichester, 2006-04-21

April 21, 2006

1, PT, 2006

Includes bibliographical references and index.

Since the Bank of England was made independent in 1997, the conduct of monetary policy has been relatively uncontroversial. The debates between Keynesians, monetarists and supporters of fixed exchange rate mechanisms, in which the IEA had so much influence, now appear very distant. Despite the apparent consensus there are many issues related to the conduct of monetary policy that are not yet settled and which will soon come to the fore. Is the current form of independence for the Bank of England appropriate? Should a central bank target inflation or the price level? How does a central bank deal with asset price deflation? Should more account be taken of monetary aggregates? Should central banks target asset prices? What is the relationship between the money supply and asset price inflation? How should central banks ensure financial stability?

"The IEA was at the forefront of changing the parameters of the debate surrounding monetary policy in the 1970s and 1980s. This text brings together some of the leading authors in the field, including the current Governor of the Bank of England, to discuss current issues in monetary policy and the relationship between monetary policy and financial markets. It is appropriate for undergraduates and postgraduates in economics and finance as well as for practitioners in financial markets."--Jacket

Explaining the important current policy issues in the conduct of monetary policy, Issues in Monetary Policy analyzes the relationship between monetary policy and inflation and the relationship between monetary policy and the behavior of financial markets, including asset prices, exchange rates, and interest rates.

Financial innovation and other developments in an advanced monetary economy will add to the many routes by which monetary policy influences financial assets and the real economy.

2023-10-08