An alternative for analysing and teaching monetary policy based on interest rate rules: the institutional perspectives from Myrdal's Monetary Equilibrium

In this article, the author reviews the analysis developed by Gunnar Myrdal (1898-1987) in his Monetary Equilibrium (1932, 1933, 1965). The author argues that Myrdal's analysis of monetary rules based on interest rates is relevant for the current policy and pedagogy, not only because Myrdal offers a workable framework, but for his incorporation of the institutional context, usually ignored by other pedagogical strategies teaching monetary rules. Thus, this article is a prelude to a more complete approach to monetary policy analysis.