About the Book

This book by a leading authority on monetary policy offers a unique view of the subject from the perspectives of both scholar and practitioner. The book discusses the changes in the conduct of monetary policy in recent years, in particular the turn to inflation targeting. It sums up “Everything You Wanted to Know about Monetary Policy Strategy, But Were Afraid to Ask,” and reflects on what we have learnt about monetary policy over the last thirty years.

The book blends theory, empirical evidence, and extensive case studies of monetary policy in advanced and emerging market and transition economies. Throughout, its focus is on the following key areas:

• the importance of price stability and a nominal anchor
• fiscal and financial preconditions for achieving price stability
• central bank independence as an additional precondition
• central bank accountability
• the rationale for inflation targeting
• the optimal inflation target
• central bank transparency and communication
• the role of asset prices in monetary policy.

Table of Contents:
1 How Did We Get Here? Frederic S. Mishkin I Fundamental Issues in the Conduct of Monetary Policy Introduction to Part I 2 What Should Central Banks Do? Frederic S. Mishkin 3 The Transmission Mechanism and the Role of Asset Prices in Monetary Policy Frederic S. Mishkin 4 The Role of Output Stabilization in the Conduct of Monetary Policy Frederic S. Mishkin 5 Can Central Bank Transparency Go Too Far? Frederic S. Mishkin 6 Is There a Role for Monetary Aggregates in the Conduct of Monetary Policy? Arturo Estrella and Frederic S. Mishkin 7 Rethinking the Role of NAIRU in Monetary Policy: Implications of Model Formulation and Uncertainty Arturo Estrella and Frederic S. Mishkin II Monetary Policy Strategy in Advanced Economies Introduction to Part II 8. Central Bank Behavior and the Strategy of Monetary Policy: Observations from Six Industrialized Countries Ben Bernanke and Frederic S. Mishkin 9 Inflation Targeting: A New Framework for Monetary Policy? Ben Bernanke and Frederic S. Mishkin 10 International Experiences with Different Monetary Policy Regimes Frederic S. Mishkin 11 Why the Federal Reserve Should Adopt Inflation Targeting Frederic S. Mishkin III Monetary Policy Strategy in Emerging Market and Transition Economies Introduction to Part III 12 Inflation Targeting in Emerging Market Countries Frederic S. Mishkin 13 Monetary Policy Strategies for Latin America Frederic S. Mishkin and Miguel A. Savastano 14 Monetary Policy Strategies for Emerging Market Countries: Lessons from Latin America Frederic S. Mishkin and Miguel A. Savastano 15 Inflation Targeting in Transition Economies: Experience and Prospects Jiri Jonas and Frederic S. Mishkin, with comment by Olivier Blanchard 16 A Decade of Inflation Targeting in the World: What Do We Know and What Do We Need to Know? Frederic S. Mishkin and Klaus Schmidt-Hebbel 17 The Dangers of Exchange-Rate Pegging in Emerging Market Countries Frederic S. Mishkin 18 The Mirage of Exchange-Rate Regimes for Emerging Market Countries Guillermo A. Calvo and Frederic S. Mishkin IV What Have We Learned? Introduction to Part IV 19 Everything You Wanted to Know about Monetary Policy Strategy, but Were Afraid to Ask Frederic S. Mishkin Sources Index