New Challenges for Monetary Policy [Paperback]

Alan Greenspan (Contributor)

Book Description

Publication Date: January 1, 2002

After two decades of successfully restoring price stability in much of the world economy, central banks begin the next millennium facing a new set of challenges. One key task is how to conduct monetary policy in an era of price stability. Clearly, policy-makers would like inflation to remain subdued. But, how should monetary policy procedures be designed to ensure that inflation does not reappear as a serious policy problem? Another important question is whether central banks enjoy greater operational flexibility or face new constraints in an environment of low inflation. On the one hand, operating in a low-inflation environment may give central banks greater leeway to address short-run economic problems without compromising long-run price stability. On the other hand, monetary policy implementation may become more difficult as nominal interest rates approach zero. Recent crises in financial markets around the world pose an additional set of challenges for policy-makers. Indeed, preserving global financial stability and dealing with extreme asset price and exchange rate movements have taken on greater urgency in many recent policy discussions.

Product Details

• Paperback: 464 pages
• Publisher: Books for Business (January 1, 2002)
• Language: English
• ISBN-10: 0894991221
• ISBN-13: 978-0894991226
• Product Dimensions: 8.5 x 5.6 x 1.2 inches
• Shipping Weight: 1.4 pounds (View shipping rates and policies)
• Amazon Best Sellers Rank: #3,060,668 in Books (See Top 100 in Books)

More About the Author

Alan Greenspan was born in 1926 and reared in the Washington Heights neighborhood of New York City. After studying the clarinet at Juilliard and working as a professional musician, he earned his B.A., M.A. and Ph.D. in economics from New York University. In 1954, he cofounded the economic consulting firm Townsend-Greenspan & Co. From 1974 to 1977, he served as chair of the Council of Economic Advisors under President Gerald Ford. In 1987, President Ronald Reagan appointed him chairman of the Federal Reserve Board, a position he held until his retirement in 2006.