Should Monetary Policy “Lean or Clean”?

Globalisation and Monetary Policy Institute, Working Paper no 34 Federal Reserve Bank of Dallas 2009

It has been contended by many in the central banking community that monetary policy would not be effective in “leaning” against the upswing of a credit cycle (the boom) but that lower interest rates would be effective in “cleaning” up (the bust) afterwards.

0809_Leanorclean Dallas.pdf

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