MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY
The problem of macroeconomic equilibrium as a theoretical basis for monetary policy has been considered. In this regard, the concept of long-term equilibrium and money neutrality has been criticized. The position on the non-equilibrium nature of economic development has been supported. As a result,...
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| Format: | Article |
| Language: | English |
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Publishing House of the State University of Management
2020-09-01
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| Series: | Вестник университета |
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| Online Access: | https://vestnik.guu.ru/jour/article/view/2361 |
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| author | V. K. Krylov |
| author_facet | V. K. Krylov |
| author_sort | V. K. Krylov |
| collection | DOAJ |
| description | The problem of macroeconomic equilibrium as a theoretical basis for monetary policy has been considered. In this regard, the concept of long-term equilibrium and money neutrality has been criticized. The position on the non-equilibrium nature of economic development has been supported. As a result, it has been concluded that it is impossible to switch to a neutral monetary policy, and therefore to establish a neutral key rate. The interest theory of K. Wicksell, his concepts of monetary and natural interest rates has been characterized. The futility of attempts to quantify the neutral interest rate has been shown. It has been concluded that the absence of radical changes in monetary policy carries with it the risk of permanent economic stagnation. |
| format | Article |
| id | doaj-art-5f785158ca214176ac3b45d09dff4b9b |
| institution | Kabale University |
| issn | 1816-4277 2686-8415 |
| language | English |
| publishDate | 2020-09-01 |
| publisher | Publishing House of the State University of Management |
| record_format | Article |
| series | Вестник университета |
| spelling | doaj-art-5f785158ca214176ac3b45d09dff4b9b2025-02-04T08:28:05ZengPublishing House of the State University of ManagementВестник университета1816-42772686-84152020-09-010814915410.26425/1816-4277-2020-8-149-1541816MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICYV. K. Krylov0State University of ManagementThe problem of macroeconomic equilibrium as a theoretical basis for monetary policy has been considered. In this regard, the concept of long-term equilibrium and money neutrality has been criticized. The position on the non-equilibrium nature of economic development has been supported. As a result, it has been concluded that it is impossible to switch to a neutral monetary policy, and therefore to establish a neutral key rate. The interest theory of K. Wicksell, his concepts of monetary and natural interest rates has been characterized. The futility of attempts to quantify the neutral interest rate has been shown. It has been concluded that the absence of radical changes in monetary policy carries with it the risk of permanent economic stagnation.https://vestnik.guu.ru/jour/article/view/2361economic equilibriumeconomic potentialkey rateliquidity absorptionmacroeconomic equilibriummoney neutralityneutral interest rateneutral monetary policy |
| spellingShingle | V. K. Krylov MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY Вестник университета economic equilibrium economic potential key rate liquidity absorption macroeconomic equilibrium money neutrality neutral interest rate neutral monetary policy |
| title | MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY |
| title_full | MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY |
| title_fullStr | MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY |
| title_full_unstemmed | MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY |
| title_short | MACROECONOMIC BALANCE AND NEUTRAL MONETARY POLICY |
| title_sort | macroeconomic balance and neutral monetary policy |
| topic | economic equilibrium economic potential key rate liquidity absorption macroeconomic equilibrium money neutrality neutral interest rate neutral monetary policy |
| url | https://vestnik.guu.ru/jour/article/view/2361 |
| work_keys_str_mv | AT vkkrylov macroeconomicbalanceandneutralmonetarypolicy |