The new consensus view of monetary policy: a new Wicksellian connection?

Arbeitspapier

One of the greatest achievements of the modern New Consensus” view in macroeconomics is the assertion of a nonquantity theoretic approach to monetary policy. Leading theorists and practitioners of this view have indeed rejected the quantity theory of money, and defended a return to the old Wicksellian idea of eliminating high levels of inflation by adjusting nominal interest rates to changes in the price level. This paper evaluates these recent developments in the theory and practice of monetary policy in terms of two basic questions: 1) What is the monetary policy instrument controlled by the central bank? and 2) Which macroeconomic variables are affected in the short and long run by monetary policy?

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 476

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy
• Subject: Wicksell ; monetary policy ; New Consensus ; endogenous Money

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fontana, Giuseppe
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/31680
• Last update: 10.03.2025, 11:45 AM CET