This paper discusses how the choice of central banks'' operating targets influences the use of their monetary policy instruments and how the latter affect the central bank''s balance sheet. This is of particular interest, since the monetary conditionality in IMF-supported programs has...

This note shows that the Svensson versus McCallum and Nelson controversy battled in the Federal Reserve Bank of St. Louis Review (September/ October 2005) can be mapped into a static version of a New Keynesian macro model that consists of an IS-equation, a Phillips curve and an inflation...