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
- )
- S2CID 21667885.
- 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.
- JSTOR 3488640.