Overview:

I would like to address four interrelated topics, on which the central banking community
has been known to pronounce:

  • the one instrument, one-target story about money and inflation;
  • the no-long-run tradeoff story that morphs into a no short-run tradeoff story;
  • the problem of the exchange rate for small, open economies;
  • and asset prices, financial stability and macro-prudential supervision.

Link to File