The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Monetary Policy

  • David E. Lindsey
  • Henry C. Wallich
Reference work entry


The term monetary policy refers to actions taken by central banks to affect monetary and other financial conditions in pursuit of the broader objectives of sustainable growth of real output, high employment, and price stability. The average rate of growth of the stock of money in circulation has been viewed for centuries as the decisive determinant of overall price trends in the long run. General financial conditions associated with money creation or destruction, including changes in interest rates, also have been considered for some time an important factor of business cycles.

This is a preview of subscription content, log in to check access.


  1. Axilrod, S.H. 1985. U.S. monetary policy in recent years: An overview. Federal Reserve Bulletin 71(1): 14–24.Google Scholar
  2. Bank of England. 1984. The development and operation of monetary policy, 1960–1983. London: Oxford University Press.Google Scholar
  3. Friedman, M. 1960. A program for monetary stability. New York: Fordham University Press.Google Scholar
  4. Goodheart, C.A.E. 1984. Monetary theory and practice: The UK experience. London: Macmillan.CrossRefGoogle Scholar
  5. Lindsey, D.E. 1986. The monetary regime of the Federal Reserve System. In Alternative monetary regimes, ed. C.D. Campbell and W.R. Dougen. Baltimore: Johns Hopkins University Press.Google Scholar
  6. McCallum, B.T. 1984. Credibility and monetary policy. In Price stability and public policy. Kansas City: Federal Reserve Bank of Kansas City.Google Scholar
  7. Poole, W. 1970. Optimal choice of monetary policy instruments in a simple stochastic macro model. Quarterly Journal of Economics 84(2): 197–216.CrossRefGoogle Scholar
  8. Wallich, H.C., and P.M. Keir. 1979. The role of operating guides in U.S. monetary policy: A historical review. Federal Reserve Bulletin 65(9): 679–691.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David E. Lindsey
    • 1
  • Henry C. Wallich
    • 1
  1. 1.