Should the implementation of monetary policy be subject to rules?

Title: Should the implementation of monetary policy be subject to rules?
Creator: Watts, Martin; Pantelopoulos, George
Relation: Debates in Monetary Macroeconomics: Tackling Some Unsettled Questions p. 23-45
Publisher Link: http://dx.doi.org/10.1007/978-3-031-11240-9_2
Publisher: Palgrave Macmillan
Resource Type: book chapter
Date: 2022
Description: In this chapter, the authors adopt a Modern Monetary Theory lens and argue that the setting of interest rates should be subject to rules, such as a target policy rate, as opposed to central bank discretion. A number of theoretical arguments are advanced as to why reliance on monetary policy to achieve full employment and price stability is ill-advised. Thus monetary policy would need to be complemented by the fiscal policy which has stronger and more predictable short-term effects on the macroeconomy. The authors advocate a job guarantee, along with infrastructure spending, which address the challenges associated with achieving and maintaining full employment and price stability.
Subject: central banks; fiscal policy; job guarentee; interest rate target; monetary policy; rules versus discretion
Identifier: http://hdl.handle.net/1959.13/1490561
Identifier: uon:52937
Identifier: ISBN:9783031112393
Language: eng

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