Monetary discipline

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

One 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

↑ Melitz, Jacques (1987-02-17) (in en). Monetary Discipline, Germany, and the European Monetary System. Rochester, NY. https://papers.ssrn.com/abstract=884539.
↑ Neyapti, Bilin; Ozgur, Secil (2007). "The Effects of Fiscal and Monetary Discipline on Budgetary Outcomes" (in en). Contemporary Economic Policy 25 (2): 146–155. doi:10.1111/j.1465-7287.2007.00034.x. ISSN 1465-7287. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1465-7287.2007.00034.x.
↑ Dalmazzo, Alberto (2014). "Monetary Discipline as a Substitute for Fiscal Reforms and Market Liberalisations" (in en). Economic Notes 43 (3): 193–210. doi:10.1111/ecno.12018. ISSN 1468-0300. https://onlinelibrary.wiley.com/doi/abs/10.1111/ecno.12018.
↑ ^4.0 ^4.1 "Ways of Controlling Inflation: Recommendations to Zimbabwean Policy Makers". March 7, 2011. http://www.nossral.org/ways-of-controlling-inflation-recommendations-to-zimbabwean-policy-makers/. Retrieved May 22, 2012.
↑ Succo, John (October 11, 2004). "Minyan Mailbag - Money Supply and Real Estate". http://www.minyanville.com/businessmarkets/articles/10/11/2004/id/5805. 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. http://www.jstor.org/stable/3488640.

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[1] Melitz, Jacques (1987-02-17) (in en). Monetary Discipline, Germany, and the European Monetary System. Rochester, NY. https://papers.ssrn.com/abstract=884539.

[2] Neyapti, Bilin; Ozgur, Secil (2007). "The Effects of Fiscal and Monetary Discipline on Budgetary Outcomes" (in en). Contemporary Economic Policy 25 (2): 146–155. doi:10.1111/j.1465-7287.2007.00034.x. ISSN 1465-7287. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1465-7287.2007.00034.x.

[3] Dalmazzo, Alberto (2014). "Monetary Discipline as a Substitute for Fiscal Reforms and Market Liberalisations" (in en). Economic Notes 43 (3): 193–210. doi:10.1111/ecno.12018. ISSN 1468-0300. https://onlinelibrary.wiley.com/doi/abs/10.1111/ecno.12018.

[nossral-4] 4.0 ^4.1 "Ways of Controlling Inflation: Recommendations to Zimbabwean Policy Makers". March 7, 2011. http://www.nossral.org/ways-of-controlling-inflation-recommendations-to-zimbabwean-policy-makers/. Retrieved May 22, 2012.

[minyan-5] Succo, John (October 11, 2004). "Minyan Mailbag - Money Supply and Real Estate". http://www.minyanville.com/businessmarkets/articles/10/11/2004/id/5805. Retrieved May 22, 2012.

[6] 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. http://www.jstor.org/stable/3488640.

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Monetary discipline

Topic: Finance

Definitions

References