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September/October 2007, 
Vol. 89, No. 5
Posted 2007-09-01

The Effectiveness of Monetary Policy

by Robert H. Rasche and Marcela M. Williams

This analysis addresses changing views of the role and effectiveness of monetary policy, inflation targeting as an “effective monetary policy,” monetary policy and short-run (output) stabilization, and problems in implementing a short-run stabilization policy.