Inflation Goal of Monetary Policy in the neo-Keynesian Model of Economy

• Autorzy: Andrzej Kaźmierczak
• Języki publikacji: EN

Abstrakty

EN

In current theoretical debates on macroeconomic stabilisation policy, there is some convergence of approaches of neo-Keynesian and neoclassical schools. Both camps share the view that anti-cyclical demand corrections do not increase production in long term. The only effect of global demand stimulation is inflation growth which, in turn, slows down the economic growth. However, contrary to neo-classics, neo-Keynesians are inclined to recommend intervention policy in the case of exogenous external shocks, which reduce global demand in the economy and impede production. Irrespective of the intended economic policy, negative demand shocks bring about unnecessary decline in employment in the economy. The compensatory monetary policy to stimulate global demand can bring about production growth, due to deficiencies of the market mechanism in the contemporary monopolised economies. The deficiencies result from the rigidity of prices and wages. According to the neo-Keynesians monetary policy instruments should be the tool of the intervention policy. The implementation of inflation goal may be reconciled with the active monetary policy of the central bank. (original abstract)

Słowa kluczowe

EN

Inflation; State monetary policy; Neokeynesian; Demand shock

PL

Inflacja; Polityka pieniężna państwa; Neokeynesizm; Wstrząs popytowy

• Czasopismo: Studia i Prace Kolegium Zarządzania i Finansów / Szkoła Główna Handlowa
• Rocznik: 2007
• Numer: z. 83
• Strony: 7--20

Twórcy

autor

Andrzej Kaźmierczak

• Szkoła Główna Handlowa w Warszawie

Bibliografia

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