Measures of Monetary Policy Stance: The Case of Pakistan
Published By: Pakistan Institute of Development Research (PIDE) | Published Date: January, 01 , 2007In this paper two measures of the monetary policy stance are constructed. The stance of monetary policy, regarded as a quantitative measure of whether the policy is too tight, neutral, or too loose relative to objectives of stable prices and output growth, is useful and important for at least two reasons. First, it helps the authority (central bank) to determine the course of monetary policy needed to keep the objective (goals) within the target range. Secondly, a quantitative measure of the stance is important for an empirical study of the transmission of monetary policy actions through the economy.
Author(s): Farooq Pasha, Abdul Qayyum | Posted on: Feb 14, 2016 | Views() | Download (162)