Monetary Policy Today: 16 Questions and 12 answers

According to Alan Blinder (Famous Macroeconomist) the following are 16 questions about monetary policy that central banks deal with. For more information on the questions and their possible answers see this paper

1. What is the proper objective function for monetary policy?

2. How transparent should the central bank be?

3. Should the central bank be an inflation targeter, as that term is commonly used?

4. Should monetary policy decisions be made by a single individual or by a committee--and, if the latter, what type of committee?

5. Should the central bank also regulate and/or supervise banks?

6. Is the proclivity of central bankers to avoid policy reversals appropriate?

7. Does the revealed preference of central bankers for gradualism make sense?

8. Is "fine tuning" possible after all? And if so, should central bankers attempt it?

9. Should central banks lead or follow the financial markets?

10. Should central banks in floating exchange rate regimes intervene in the foreign-exchange market?

11. Should central banks use derivatives in the conduct of monetary policy?

12. Transmission through the term structure of interest rates

13. Transmission through the exchange rate

14. How should the central bank deal with asset-market bubbles?

15. How should the central bank deal with the zero lower bound on nominal interest rates?

16. Do the world’s giant central banks have global responsibilities?