An “accommodative policy” refers to a central bank’s approach to expanding the money supply and boosting economic growth, ...

Traditionally, intermediate targeting has involved a preannounced exchange rate rule or targets for a specific monetary aggregate. Under the exchange rate rule, monetary policy is severely limited, ...

There are several reasons for this, but the two largest are: The U.S. Federal Reserve switched from controlling actual monetary aggregates, or the number of bills in circulation, to implementing ...

We then study the role of monetary policy in affecting the macroeconomy, and the implications of nominal rigidities such as sticky prices. We analyse the costs of inflation and optimal monetary policy ...

Annual growth rate of broad monetary aggregate M3 increased to 3.6% in January 2025 from 3.4% in December (revised from 3.5%) Annual growth rate of narrower monetary aggregate M1, comprising currency ...

Monetary aggregates, known also as "money supply", is the quantity of currency available within the economy to purchase goods and services. M3 is a broad monetary aggregate that includes all ...

We analyse the costs of inflation and optimal monetary policy, and we also look at unconventional monetary policies when a central bank is constrained by the interest-rate lower bound. Finally, we ...