Monetary Policy

A sound monetary system is vital in establishing macroeconomic stability and creating an economic and political environment where society can prosper and thrive. Since money is half of every transaction, monetary policy errors have the potential to destabilize the entire economy. Our scholars study how central banks, including the Federal Reserve, can best produce a predictable monetary policy to mitigate business cycles and how central banks can be accountable to the public, while also retaining their political independence.