Monetary discipline is a phrase used by some economists when speaking of monetary policy, generally meaning limiting the money supply of an economy in some way.[1][2][3]
Definitions
editOne definition of monetary discipline is a central bank matching the money supply to the level of production or reserves in an economy.[4] This definition holds that money printing should have a relationship to a particular economic equation, rather than being influenced by politics.[4]
Another definition is constraining the money supply, limiting inflation, and growing an economy by increasing the velocity of money.[5]
Another way of achieving monetary discipline is by keeping a pegged exchange rate, thereby matching a money supply to a foreign currency.[6]
References
edit- ^ Melitz, Jacques (1987-02-17). "Monetary Discipline, Germany, and the European Monetary System". Rochester, NY. SSRN 884539.
{{cite journal}}: Cite journal requires|journal=(help) - ^ Neyapti, Bilin; Ozgur, Secil (2007). "The Effects of Fiscal and Monetary Discipline on Budgetary Outcomes". Contemporary Economic Policy. 25 (2): 146–155. doi:10.1111/j.1465-7287.2007.00034.x. hdl:11693/23491. ISSN 1465-7287. S2CID 21667885.
- ^ Dalmazzo, Alberto (2014). "Monetary Discipline as a Substitute for Fiscal Reforms and Market Liberalisations". Economic Notes. 43 (3): 193–210. doi:10.1111/ecno.12018. ISSN 1468-0300. S2CID 155078596.
- ^ a b "Ways of Controlling Inflation: Recommendations to Zimbabwean Policy Makers". March 7, 2011. Retrieved May 22, 2012.
- ^ Succo, John (October 11, 2004). "Minyan Mailbag - Money Supply and Real Estate". Retrieved May 22, 2012.
- ^ Fielding, David; Bleaney, Michael (2000). "Monetary Discipline and Inflation in Developing Countries: The Role of the Exchange Rate Regime". Oxford Economic Papers. 52 (3): 521–538. doi:10.1093/oep/52.3.521. ISSN 0030-7653. JSTOR 3488640.