TY - JOUR
T1 - Has monetary policy become more efficient? A cross-country analysis
AU - Cecchetti, Stephen G.
AU - Flores-Lagunes, Alfonso
AU - Krause, Stefan
PY - 2006/4
Y1 - 2006/4
N2 - Over the past 20 years, macroeconomic performance has improved in industrialised and developing countries alike. In a broad cross-section of countries inflation volatility has fallen markedly while output variability has either fallen or risen only slightly.This increased stability can be attributed to some combination of more efficient monetary policy making, a reduction in the variability of supply shocks, and changes in the structure of the economy. We develop a method for allocating performance changes among these factors. For 21 of the 24 countries we study, more efficient monetary policy has been the driving force behind improved performance.
AB - Over the past 20 years, macroeconomic performance has improved in industrialised and developing countries alike. In a broad cross-section of countries inflation volatility has fallen markedly while output variability has either fallen or risen only slightly.This increased stability can be attributed to some combination of more efficient monetary policy making, a reduction in the variability of supply shocks, and changes in the structure of the economy. We develop a method for allocating performance changes among these factors. For 21 of the 24 countries we study, more efficient monetary policy has been the driving force behind improved performance.
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U2 - 10.1111/j.1468-0297.2006.01086.x
DO - 10.1111/j.1468-0297.2006.01086.x
M3 - Article
AN - SCOPUS:33645464864
SN - 0013-0133
VL - 116
SP - 408
EP - 433
JO - Economic Journal
JF - Economic Journal
IS - 511
ER -