Monetary Aggregates as Targets of Monetary Policy — the Irish Experience 1971 to 1976

Abstract

This paper is intended to give a brief description of the Irish experience of using targets in formulating and implementing policy and does not explore the theoretical underpinnings or technical and other aspects of monetary policy in Ireland in any detail. This approach runs the risk of giving the impression that monetary policy is less complex and more mechanistic than it is in reality. Monetary policy, of course, involves much more than setting and monitoring targets for the monetary aggregates but these wider issues are only touched upon in this paper. Before going on to discuss monetary policy and targets in Ireland a brief reference to the salient features of the Irish economy may set the scene.