Designing Monetary Policy for Developed and Developing Countries
Background:
The aim of this research is to achieve a better understanding of how monetary policy operates. We explore three aspects of the monetary policy framework that have been less well studied in the recent literature on the stabilization role of the monetary policy.
First we investigate how wage synchronization practices influence the effectiveness of monetary policy. Secondly we put emphasis on the interaction between monetary and fiscal policy and in particular on the implications of this interaction for the conduct of optimal monetary policy. Thirdly we examine the extent to which imperfect credibility about the conduct of monetary policy might affect the behaviour of inflation.
Journals, seminar papers and other publications:
K. Aoki & T. Kimura, “Uncertainty about Perceived Inflation Target and Monetary Policy”, unpublished manuscript
Barnichon, Olivei & Tenreyro, “Time-Dependent Effects of Monetary Policy: Evidence from Japan and Europe”, unpublished manuscript
Benigno & De Paoli, “Optimal Fiscal and Monetary Policy for a Small open Economy”, unpublished manuscript
Contact:
Dr Gianluca Benigno
Department of Economics
London School of Economics
Houghton Street
London
WC2A 2AE
Tel: 020 7955 7807
email: g.benigno@lse.ac.uk
Duration of Research:
June 2006 - May 2008