In this text leading monetary economists discuss applied aspects of monetary policy and offer practical research on the timing, magnitude, and channels of central banking actions. The contributors evaluate a variety of policy rules based on monetary aggregates, nominal income, commodity prices, and other economic variables. They also analyze price behaviour and inflation, particularly the short-run behaviour of prices. Other papers examine the monetary transmission mechanism - the channel through which the central bank's actions affect spending on goods and services - with a special focus on the reduction in bank lending that must accompany a reduction in reserves. The book is intended for monetary specialists, graduate students and economists.