Monetary Conditions Index: A Composite Measure of Monetary Policy in Pakistan

Estimating the Index of Monetary Policy Efficiency in a Selected Country: Pakistan

The ultimate goal of monetary policy is to achieve price stability and favorable economic growth through policy tools. The purpose of this paper is to determine the optimal monetary policy rule and measure and evaluate the effectiveness of monetary policy in an elected economy -Pakistan- with optimal control method. In this way, using Dyn‌amic Programming, monetary policy maker's loss function ...

A measure of monetary conditions

This paper explains why the overall stance of monetary policy is effected by both interest rates and the exchange rate, and hence why a Monetary Conditions Indicator can provide useful information about the stance of policy. Three output gap equations estimated in this paper reveal that the real interest rate and the real exchange rate both affect excess demand but that the real interest rate i...

A monetary policy rule: The augmented Monetary Conditions Index for Philippines using UECM and bounds tests

This paper constructs the augmented monetary conditions index (AMCI) over 1982:12004:4 using UECM and bounds test approach for the Philippines data. Results reveal evidence of cointegration between the real GDP and its determinants, namely shortterm interest rate, exchange rate and claims on private sectors that take into account three key transmission mechanisms channels in the conduct of mone...

Monetary Aggregates and Monetary Policy

This is a special conference for the Federal Reserve Bank of Boston, and for me personally. The role of monetary aggregates in monetary policy was intensely controversial when I joined the staff of the Board of Governors in May 1969. I was immediately asked to join the staff of the newly formed FOMC Committee on the Directive. Governor Sherman Maisel chaired that committee; the other two member...

Taylor interest rate and Monetary Conditions Index