TY  - JOUR
AU  - McCallum,Bennett T.
TI  - On Consequences and Criticisms of Monetary Targeting
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1596
PY  - 1986
Y2  - February 1986
UR  - http://www.nber.org/papers/w1596
L1  - http://www.nber.org/papers/w1596.pdf
N1  - Author contact info:
Bennett T. McCallum
Tepper School of Business, Posner 256
Carnegie Mellon University
Pittsburgh, PA 15213
Tel: 412/268-2347
Fax: 412/268-6830
E-Mail: bm05@andrew.cmu.edu
AB  - The purpose of this paper is to review and evaluate the most important existing criticisms of policy strategies that feature adherence to money stock targets. Four main categories of criticism (and counterargumerits) are analyzed. The first of these involves the claim that accurate money stock control is infeasible while the second contends that such control can only be obtained along with extreme volatility of interest rates. The third emphasizes difficulties resulting from technical change and deregulation, and the fourth concerns strategic issues of rules vs. discretion, activist vs. non-activist policy, and the logical function of intermediate targets.
ER  -