How monetary policy works / edited by Lavan Mahadeva and Peter Sinclair.

"First published in 2005. First issued in paperback ed 2012."

Includes bibliographical references (pages [411]-438) and index.

1. Introduction / Lavan Mahadeva and Peter Sinclair -- 2. The transmission of monetary policy through interest rates : policy rate effects on other interest rates, asset prices, consumption and investment / Peter Sinclair -- 3. How policy rates affect output, prices and labour, open economy issues, and inflation and disinflation / Peter Sinclair -- 4. Model-building in theory and practice : the output gap / Lavan Mahadeva -- 5. Model-building in theory and practice : the Phillips curve / Lavan Mahadeva -- 6. Transmission mechanisms and inflation targeting : the case of Colombia's disinflation / Javier Gomez and Juan Manuel Julio

"This book, a collaboration between practitioners of monetary policy across the world, helps to provide a foundation for understanding how monetary policy works in all its complex glory. Using models, case studies and new empirical evidence, the contributors to this book help readers on many levels develop their technical expertise." "Students of macroeconomics, money and banking and international finance will find this to be a good addition to their reading lists. At the same time, policymakers and professionals within banking will learn valuable lessons from a thorough read of this book's pages."--BOOK JACKET.