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Monetary Regimes, Inflation and Monetary Reform:

  • Michael Bordo
  • Lars Jonung

Abstract

Since the late 1970s Axel Leijonhufvud has written extensively on monetary regimes and their connection with nominal and real economic performance. Monetary regimes are important because they determine whether countries follow stable or unstable monetary policies and hence have stable or inflationary price levels. Each monetary regime is associated with a given set of inflationary expectations of the private sector and a pattern of policy reactions to these expectations by the monetary authorities. The state of the private sector’s expectations, specific to each regime, in turn greatly influences the response of real variables to monetary policy actions.

Keywords

Exchange Rate Monetary Policy Demand Shock Monetary Authority Supply Shock 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Daniel Vaz and Kumaraswamy Velupillai 1996

Authors and Affiliations

  • Michael Bordo
  • Lars Jonung

There are no affiliations available

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