imf高级宏观经济学研修班课件ct1405mmf-l03moneta.pptVIP

Monetary Policy Transmission Mechanism CTP Training Program Macroeconomic Management and Financial Sector Issues CT14.05 Presenter Tao Wu Content Outline General Issues about Monetary Policy Objectives: What monetary policy can and cannot do. Choice of policy instruments: direct or indirect ? Choice of operating target: interest rate or monetary aggregates? Transmission Mechanism: How does monetary policy work? Interest rate, Credit, Asset price, Exchange rate Recent Monetary Policy Issues: The U.S. Federal Reserve’s Unconventional Monetary Policy Operations 2 This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Institute courses. Any reuse requires the permission of the IMF Institute.” What Monetary Policy Can and Cannot Do What Monetary Policy Can and Cannot Do “We are in danger of assigning to monetary policy a larger role than it can perform, in danger of asking it to accomplish tasks that it cannot achieve, and, as a result, in danger of preventing it from making the contribution that it is capable of making.”” — Presidential address of Milton Friedman at the 80th Annual Meeting of the American Economic Association, 1967. What Monetary Policy Can and Cannot Do Long-run effects vs. Short-run effects Monetary policy may be effective in short run, but its effects in determining the real economic growth or employment in long run are almost negligible. The best way for monetary policy to promote long-run economic growth is to ensure price stability. Pricing system works more efficiently to allocate resources when prices are on average stable; To avoid distortions caused by the interaction of inflation and a tax system based on the assumption that prices are stable. What Monetary Policy Can and Cannot Do Central banks cannot have any substantial effect on trend growth in output or trend growth in employment. policies by government that can have a material influence on both: education, human capital, techno