Promotional Information

A unique, comprehensive discussion of how monetary policymakers can use market prices to produce price stability. Of major importance to bankers, economists, and finance and investment professionals.

Table of Contents

Introduction The Changing Financial Environment Problems with Alternative Approaches to Policy An Outline of the Market Price Approach to Monetary Policy Historical Foundations of the Market Price Approach The Methodological Rationale for Using Price Data The Workings of Monetary Policy: Lessons and the Appropriate Policy Instrument The Yield Spread and Bond Yields: Evidence of Their Use as Monetary Policy Indicators Commodity Prices: Rationale and Empirical Evidence as a Monetary Policy Indicator The Foreign Exchange Rate: Rationale and Evidence as a Monetary Policy Indicator The Use of Market Prices in Conjunction with One Another Market Price Indicators and Monetary Policy from 1970 to 1990 The Market Price Approach to 1930s Monetary Policy in Sweden Summary and Conclusions Index

About the Author

MANUEL H. JOHNSON is Co-Chairman of Johnson Smick International, a Washington-based consulting firm that provides information services on important economic and political policy changes that affect global financial markets. Before joining Johnson Smick, Dr. Johnson was Vice Chairman of the Board of Governors of the Federal Reserve System, and before that was Assistant Secretary of the Treasury. He was also a professor of international economics at George Mason University and has served on various important boards and commissions. He is author and coauthor of four books and has published more than 50 articles in academic journals and other publications. ROBERT E. KELEHER is Chief Economist of Johnson Smick International. Prior to joining the firm he was Vice-Chairman Johnson's special assistant and monetary adviser at the Federal Reserve Board, and also served as Senior Macroeconomist at the Council of Economic Advisors. He has also been Research Officer and Senior Financial Economist at the Federal Reserve Bank of Atlanta and an economist at First Tennessee National Corporation, a major regional bank holding company. He is coauthor of one book and the author of more than 40 articles in academic journals and other publications.