- Working Paper (15) (remove)
- Monetary theory and monetary policy : reflections on the development over the last 150 years (2012)
- In this paper, we provide some reflections on the development of monetary theory and monetary policy over the last 150 years. Rather than presenting an encompassing overview, which would be overambitious, we simply concentrate on a few selected aspects that we view as milestones in the development of this subject. We also try to illustrate some of the interactions with the political and financial system, academic discussion and the views and actions of central banks.
- Der Weg aus der Krise : mehr Europa! Welches Europa? (2012)
- Vortrag im Rahmen der Weimarer Reden 11. März 2012: - Einführung - Was ist mit „Europa“ gemeint? - Europa als politisches Ziel - Integration über die Wirtschaft - Die Rolle der einheitlichen Währung - Dimensionen der Krise - Transferunion, Fiskalunion, Politische Union
- Lessons for monetary policy: what should the consensus be? (2011)
- This paper outlines important lessons for monetary policy. In particular, the role of inflation targeting, which was much acclaimed prior to the financial crisis and since then has not lost much of its endorsement, is critically reviewed. Ignoring the relation between monetary policy and asset prices, as is the case in this monetary policy approach, can lead to financial instability. In contrast, giving, inter alia, monetary factors a role in central banks’ policy decisions, as is done in the ECB’s encompassing approach, helps prevent these potentially harmful side effects and thus allows for fostering financial stability. Finally, this paper makes a case against increasing the central banks’ inflation target. JEL Classification: E44, E52, E58 Keywords: Inflation Targeting, Asset Prices, Financial Stability, ECB