In this article, we survey experiments that are directly related to monetary policy and central banking. We argue that experiments can also be used as a tool for central bankers for bench testing policy measures or rules. We distinguish experiments that analyze the reasons for non-neutrality of monetary policy, experiments in which subjects play the role of central bankers, experiments that analyze the role of central bank communication and its implications, experiments on the optimal implementation of monetary policy, and experiments relevant for monetary policy responses to financial crises. Finally, we mention open issues and raise new avenues for future research.
We would like to thank the Editor John Duffy, Andreas Orland and Stefan Palan for helpful comments on earlier drafts.
Cornand, C. and Heinemann, F. (2014), "Experiments on Monetary Policy and Central Banking", Experiments in Macroeconomics (Research in Experimental Economics, Vol. 17), Emerald Group Publishing Limited, Bingley, pp. 167-227. https://doi.org/10.1108/S0193-230620140000017006
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