MONETARY POLICY WAL MART

Monetary Policy Wal Mart

Monetary Policy Wal Mart

Monetary policy is an issue of governance because it raises the question of how far a key economic policy should be delegated to an independent agent. The independence of central banks is a time-honored topic, mainly asking to what extent the monetary authority should be instrument-independent and goal-independent. Although virtually all independent central banks react to deviations from employment and inflation goals with changes in the short-term interest rate, there is now debate whether a central bank should pre-commit to quantified and announced goals and thus follow an explicit rule and ...