chapter  8
16 Pages

Representative Control of Monetary Policy

Monetary policy institutions are not simply technical rules designed to increase the precision of monetary control in complex financial markets. Institutions that structure choice and action within agencies have strategic and political utility for agency decision makers. These institutions can condition the relationship between an agency and social actors with a stake in agency outcomes. One implication of this dual role for agency procedures is apparent from Fed experience. Strategic considerations may challenge precision or efficiency considerations as policy institutions are updated.