Stiglitz urges central banks to focus on credit, not interest rates
Credit is more important than interest rates in supporting growth, economist says
Part of the explanation for the recent "extraordinary ineffectiveness" of monetary policy is the inadequacy of central banks' focus on the interest rate, Joseph Stiglitz argues in a recent paper.
Stiglitz, who jointly won the Nobel prize for economics in 2001, says the quantity and terms at which credit is available is much more important than the interest rate in determining whether an economy will grow. He presents the idea in a paper published recently by the National Bureau of Economic
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com