Monetary discipline

Source: Wikipedia, the free encyclopedia.

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

  1. SSRN 884539. {{cite journal}}: Cite journal requires |journal= (help
    )
  2. .
  3. .
  4. ^ a b "Ways of Controlling Inflation: Recommendations to Zimbabwean Policy Makers". March 7, 2011. Retrieved May 22, 2012.
  5. ^ Succo, John (October 11, 2004). "Minyan Mailbag - Money Supply and Real Estate". Retrieved May 22, 2012.
  6. JSTOR 3488640
    .