TY  - JOUR
AU  - Flood,Robert
AU  - Mussa,Michael
TI  - Issues Concerning Nominal Anchors for Monetary Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4850
PY  - 1994
Y2  - September 1994
UR  - http://www.nber.org/papers/w4850
L1  - http://www.nber.org/papers/w4850.pdf
N1  - Author contact info:
Robert Flood
Notre Dame
E-Mail: rflood1@nd.edu

Michael L. Mussa
E-Mail: N/A user is deceased
AB  - This paper presents a selective survey of issues relevant to the choice of nominal anchors for monetary policy.  Section I reviews long price-level histories for the United Kingdom and United States, which reveal that the price level behaved very differently following WWII in these countries than it had done in previous post-war experiences.  In particular following WWII the responsibilities of monetary policy expanded to encompass a business-cycle stabilization role and the nominal anchor shifted from the fixed anchor or price-level stability to the moving anchor of inflation-rate stability.  The remaining sections of the paper review, in the context of a variety of models, some of the considerations that are relevant to setting the average inflation rate in countries without a fixed nominal anchor.
ER  -