Lecture5monetaryrules课程.pptVIP

* * * * * * * Money and Banking: Monetary Rules Lecture 5 Outline… Monetary Rules Monetary Rules Monetary Rules Pretense of currencies’ connection to real commodities disappeared after the collapse of the Bretton Woods system of fixed exchange rates We now live in a world of fiat money Money not dictated anymore by vagaries of nature Money dictated by government regulation (Wicksell) Abuses by governments led to chronic inflation or hyperinflation Central banks succeeded at bringing down inflation, but after the 80s Push for monetary rules instead of discretionary governmental powers (rule-bas