Credit channel as a channel of influence of financial factors on the real economy has been an intensive subject of both theoretical and empirical research during the last twenty years. Leena Morttinen's doctoral dissertation deals with several topics in this area. The first essay studies the...

A fundamentals based monetary policy rule, which would be optimal when private agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules. This problem can be overcome if private expectations are observed and suitably incorporated...

Recent models of monetary policy and monetary rules can have indeterminacy of equilibria. The indeterminacy property is often viewed as a difficulty of these models. We consider its significance using the learning approach to expectations formation by employing expectational stability as a...

It is indeed inflation targeting which has over recent years become popular in many central banks. The author's task will, however, be somewhat more limited in that she will try to evaluate the switch of monetary policies from the target zone approach to an explicit inflation target in her own...