DP1821 Monetary Policy and Inflation: From Theory to Practice

Author(s): José Viñals
Publication Date: March 1998
Keyword(s): costs of inflation, Inflation, Monetary Policy, strategy
JEL(s): E42, E52, E58
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1821

This paper addresses a number of questions which are essential to a proper understanding of the causes and effects of the inflationary process and to an assessment of the contribution of monetary policy to the achievement of long-term price stability. These questions are: (1) what are the economic costs of inflation? (2) what part does monetary policy play in the short- and medium-term evolution of inflation? (3) what are the most appropriate monetary policy strategies for fighting inflation?