Patrick Artus and Yves Barroux The Applied Econometric Association
organised an international conference on "Monetary and Financial
Models" in Geneva in January 1987. The purpose of this book is to
make available to the public a choice of the papers that were
presented at the conference. The selected papers all deal with the
setting of monetary targets and the effects of monetary policy on
the economy as well as with the analysis of the financial
behaviours of economic agents. Other papers presented at the same
conference but dealing with the external aspects of monetary policy
(exchange rate policy, international coordination of economic
policies, international transmission of business cycles, . . . )
are the matter of a distinct publication. The papers put together
to make up this book either are theoretical research contributions
or consist of applied statistical or econometric work. It seemed to
be more logical to start with the more theoretical papers. The
topics tackled in the first two parts of the book have in common
the fact that they appeared just recently in the field of economic
research and deal with the analysis of the behaviour of Central
Banks. They analyse this behaviour so as to be able to exhibit its
major determinants as well as revealed preferences of Central
Banks: this topic comes under the caption "optimal monetary policy
and reaction function of the monetary authorities."
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