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Conventional monetary policy transmission mechanisms, such as the interest rate channel, focus on direct effects of monetary policy actions. The interest rate channel, for example, suggests that monetary policy makers use their leverage over nominal, short-term interest rates, such as the federal funds rate , to influence the cost of capital ...
That is, the rule produces a relatively high real interest rate (a "tight" monetary policy) when inflation is above its target or when output is above its full-employment level, in order to reduce inflationary pressure. It recommends a relatively low real interest rate ("easy" monetary policy) in the opposite situation, to stimulate output.
Economic sociology is the study of the social cause and effect of various economic phenomena. The field can be broadly divided into a classical period and a ...
Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions ( as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. [1]
The monetarist theory states that variations in the money supply have major influences on national output in the short run and on price levels over longer periods. Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy. [1]
From 1992 to 2012, he was the chair of economic and environmental sociology at Martin Luther University of Halle-Wittenberg, Germany. [1] He has written influential papers on Monetary System Analysis and Sovereign Money Theory, for instance "Seigniorage Reform and Plain Money".
The Polak model is a monetary approach to the balance of payment published by J. J. Polak in 1957. It seeks to model a small, open economy operating under fixed nominal exchange rate . Polak suggest explicit links between the monetary and external sectors.
The first chapter of The General Theory (only half a page long) has a similarly radical tone: I have called this book the General Theory of Employment, Interest and Money, placing the emphasis on the prefix general. The object of such a title is to contrast the character of my arguments and conclusions with those of the classical theory of the ...