Department of Economics and Business - Universitat Pompeu Fabra

Title:: The monetary pillar and the great financial crisis
Author:: Jordi Galí
Date:: June 2010
Abstract:: Since its inception, a most distinctive (and controversial) feature of the ECB monetary policy strategy has been its emphasis on money and monetary analysis, which constitute the basis of the so-called monetary pillar. The present paper examines the performance of the monetary pillar around the recent financial crisis episode, and discusses its prospects in light of the renewed emphasis on financial stability and the need for enhanced macro-prudential policies.
Keywords:: monetary policy strategy, two pillar strategy, monetarism, financial stability.
JEL codes:: E52, E58.
Area of Research:: Macroeconomics and International Economics

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