Monetary Policy

This new book on monetary policy includes up to date examples on how it actually works in practice. Written by an industry leader, it reflects the modern approach to teaching monetary economics, providing a clear exposition on key models and issues in a way that ties in effectively with ongoing research and policy.

Designed for advanced undergraduates in economics, this new text provides an up-to-date analysis of the practice and theory of monetary policy and discusses key models that tie in with contemporary research and policy. The transmission mechanism of monetary policy is given particular emphasis and the book discusses the behaviour of a number of central banks, in particular the Bank of England, the European Central Bank and the Federal Reserve. The worldwide credit crunch and subsequent recession and non-conventional monetary policies such as quantitative easing are also given extensive treatment.  There are also chapters on a wide variety of topics such as: Consumption, investment, money demand and money supply, nominal rigidities, inflation and unemployment, time Inconsistency and central bank independence, the social costs of inflation, the role of financial intermediaries, monetary policy in an open economy, the term structure of interest rates, the stock market, the housing market and fiscal policy.