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Expectations and Monetary Policy: A Historical Perspective
Author(s) -
Cesarano Filippo
Publication year - 1998
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00116
Subject(s) - economics , perspective (graphical) , commodity , rational expectations , monetary policy , mechanism (biology) , monetary transmission mechanism , scarcity , neoclassical economics , positive economics , macroeconomics , microeconomics , keynesian economics , credit channel , inflation targeting , computer science , market economy , epistemology , philosophy , artificial intelligence
Classical economists developed a surprisingly sophisticated analysis of money supply variations that, anticipating the main features of contemporary theory, emphasizes the role of information in the transmission mechanism. Drawing on the classical contributions, this paper outlines a general approach to monetary policy, treating information as a scarce commodity allocated optimally by rational agents.