Άριστες νομισματικές επιλογές: η ελληνική περίπτωση κατά την περίοδο 1988-1995

Abstract

It has been nearly 25 years since Poole (1970) in his classic paper on the issue of optimal choice of the
monetary policy instrument in a stochastic IS-LM model argued that the Monetary Authorities (MA) can
control either the interest rate or the money supply (or reserve base money).
The basic hypothesis of this paper within the neoclassical school of thought is that the MA desire to
control the stock of money, which is the most important factor that determines the behavior of the price
level.
This paper employs an econometric model to examine the optimal choice of the monetary instrument
for the case of the Greek economy over the period 1988-1995. The empirical results provide evidence in
favor of the MA's current choice of using the interest rate as the primary monetary instrument.