Suchergebnisse

The Interaction of Policy and Outcomes -- Coordinating Price Information -- Outcomes and Policy: An Illustration -- Policy Evolution: 1960 to 2000 -- The Role of Policymakers -- The Theoretical Model -- Policy and Aggregate Variability -- The Optimal Policymaker Role -- Coordination Dynamics -- Coordinating Inflation Forecasts -- Inflation-Stabilizing Policy: Robustness -- Conclusion and Implications.

This book's central theme is that a policymaker's role is to enhance the public's ability to coordinate their price information, price expectations, and economic activities. This role is fulfilled when policymakers maintain inflation stability. Inflation persists less when an implicit or explicit inflation target is met. Granato and Wong argue that inflation persistence is reduced when the public substitutes the prespecified inflation target for past inflation. A by-product of this co-ordination process is greater economic stability. In particular, inflation stability contributes to greater economic output stability, including the potential for the simultaneous reduction of both inflation and output variability - inflation-output co-stabilization (IOCS). Granato and Wong use historical, formal, and applied statistical analysis of business-cycle performance in the United States for the 1960 to 2000 period. They find that during periods when policymakers emphasize inflation stability, inflation uncertainty and persistence were reduced

A major factor in poverty reduction is material developments fueled by economic development. This article shows how one type of policy practice is associated with longer periods of economic growth & sustained development, & how specific policy mistakes that were made in the developed world should not be repeated by the developing world. Avoiding past policy mistakes means the continuation of poverty reduction. The authors focus on individual policymakers who influence the monetary authority & actions taken to stabilize business cycles. To ensure that the price system works & the coordinating function of prices is maintained, policy actions aimed at inflation stability must be taken. The authors conclude that all details of monetary policy implementation should be guided by a focus on information coordination reached by stabilizing inflation. Figures. E. Sanchez