The Science of Monetary Policy

Professor Jagjit Chadha gave his fourth Gresham Lecture on Thursday 26 March on ‘The Science of Monetary Policy’.

Overview: The near loss of price stability in the 1970s led to serious attention being paid to the role of expectations in economic management and the need to find monetary rules that respected changing incentives faced by households and firms under different economic environments. Models were then developed that mostly yielded arguments for price stability under an interest rate feedback rule and for a decade or so, under the Long Expansion, all seemed well.

To read a transcript of the lecture, click here.