Recent Publications

Taiwan Economic Research Monthly Incomplete Theory Makes Monetary Policy Excessively Expected ‧ In 2022, Nouriel Roubini, an economist at New York University, believed that this tightening policy would be suspended due to problems in important financial institutions. In March 2023, the bankruptcy of Silicon Valley Bank and many problems in other financial institutions broke out. Although the US Federal Reserve and Taiwan’s central bank continue to raise or tighten interest rates, the huge financial support for those institutions that have problems is actually a loose policy. Over the years, financial crises and monetary policy tightening have occurred in turn, which even makes people suspect that monetary policy is the cause or boost of large economic fluctuations. The possibility that monetary policy aimed at stabilizing the economy will cause economic fluctuations has long been pointed out by scholars such as Milton Friedman, and one of the reasons why monetary policy may continue to cause fluctuations is the economic and monetary theory that oversimplifies and exaggerates the effectiveness of monetary policy.