For monetary policymakers worldwide, developing a practical understanding of how monetary policy transmits to the economy is a day-to-day challenge. The data such policymakers have is imperfect, the maps they use are continually redrawn. With such uncertainty, understanding this complicated issue is rarely straightforward. This book, a collaboration between some of the finest minds working on monetary theory in the world, helps to provide a foundation for understanding monetary policy in all its complex glory. Using models, case studies and new empirical evidence, the contributors to this book help readers on many levels develop their technical expertise. Students of macroeconomics, money and banking and international finance will find this to be a good addition to their reading lists. At the same time, policymakers and professionals within banking will learn valuable lessons from a thorough read of this book's pages. ÍNDICE: 1. Introduction 2. The Transmission Mechanism of Monetary Policy Through Interest Rates - Policy Rate Effects on Other Interest Rates, Asset Prices, Consumption and Investment Peter Sinclair 3. How Policy Rates Affect Output, Prices and Labour - Open Economy Issues; and Inflation and Disinflation Peter Sinclair 4. Model-building in Theory and Practice: The Output Gap Lavan Mahadeva 5. Model-building in Theory and Practise: The Philips Curve Lavan Mahadeva 6. Transmission Mechanisms and Inflation Targeting - The Case of Columbia's Disinflation Javier Gómez and Juan Manuel Julio 7. Monetary Transmission Mechanism in Poland Tomasz Lyziak 8. Monetary Policy and Goals for External Competitiveness - A Dynamic General Equilibrium Model for Hungary Áron Gereben 9. Monetary Transmission Mechanism - A View from a High Inflation Environment Gülbin Sahinbeyoglu 10. Measures of Monetary Policy Transparency and the Transmission Mechanism Richhild Moessner, Toni Gravelle and Peter Sinclair 11. Discussant's Comments Marion William, Barbados 13. Discussant's Co