Monetary Policy in the New Normal

Author/Editor:

Tamim Bayoumi ; Giovanni Dell'Ariccia ; Karl F Habermeier ; Tommaso Mancini Griffoli ; Fabian Valencia

Publication Date:

April 4, 2014

Electronic Access:

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Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary:

The proposed SDN would take stock of the current debate on the shape that monetary policy should take after the crisis. It revisits the pros and cons of expanding the objectives of monetary policy, the merits of turning unconventional policies into conventional ones, how to make monetary policy frameworks more resilient to the risk of being constrained by the zero-lower bound going forward, and the institutional challenges to preserve central bank independence with regards to monetary policy, while allowing adequate government oversight over central banks’ new responsibilities. It will draw policy conclusions where consensus has been reached, and highlight the areas where more work is needed to get more granular policy advice.

Series:

Staff Discussion Notes No. 2014/003

Subject:

English

Publication Date:

April 4, 2014

ISBN/ISSN:

9781475561784/2617-6750

Stock No:

SDNEA2014003

Pages:

49

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