modern monetary economics
E930669
Modern monetary economics is a field of economic theory that rigorously analyzes the role of money, monetary policy, and financial institutions in determining prices, output, and welfare using formal micro-founded models.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
academic discipline
ⓘ
field of economics ⓘ subfield of macroeconomics ⓘ |
| analyzes |
forward guidance
ⓘ
inflation targeting ⓘ optimal monetary policy ⓘ price level targeting ⓘ quantitative easing ⓘ unconventional monetary policy ⓘ welfare effects of monetary policy ⓘ zero lower bound on nominal interest rates ⓘ |
| appliesTo |
central banking practice
ⓘ
inflation control ⓘ monetary policy design ⓘ stabilization policy ⓘ |
| focusesOn |
financial institutions
ⓘ
monetary policy ⓘ output determination ⓘ price determination ⓘ role of money in the economy ⓘ welfare analysis ⓘ |
| goal |
explain how monetary policy affects real and nominal variables
ⓘ
provide micro-foundations for monetary policy analysis ⓘ |
| relatedTo |
New Keynesian economics
NERFINISHED
ⓘ
financial economics ⓘ macroeconomic policy ⓘ monetary theory ⓘ |
| studies |
banking sector
ⓘ
central bank behavior ⓘ credit markets ⓘ expectations formation ⓘ financial frictions ⓘ inflation dynamics ⓘ interest rate rules ⓘ liquidity constraints ⓘ monetary transmission mechanism ⓘ money demand ⓘ money supply ⓘ nominal rigidities ⓘ policy credibility ⓘ price stickiness ⓘ time inconsistency of policy ⓘ wage stickiness ⓘ |
| usesMethod |
dynamic stochastic general equilibrium models
ⓘ
formal economic modeling ⓘ general equilibrium analysis ⓘ intertemporal optimization ⓘ micro-founded models ⓘ rational expectations ⓘ |
Referenced by (1)
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