In ‡ ation Targeting : Should It Be Modeled as an Instrument Rule or a Targeting Rule ? ¤
نویسنده
چکیده
The paper discusses how current in ‡ation targeting should be modeled, and argues that it is better represented as a commitment to a targeting rule (a rule specifying operational objectives for monetary policy or a condition for the target variables), than as a commitment to a simple instrument rule (like a Taylor rule).
منابع مشابه
In ‡ ation Targeting : Should It Be Modeled as an Instrument Rule or a Targeting Rule ? ¤ Lars
The paper discusses how current in ‡ation targeting should be modeled, and argues that it is better represented as a commitment to a targeting rule (a rule specifying operational objectives for monetary policy or a condition for the target variables), than as a commitment to a simple instrument rule (like a Taylor rule).
متن کاملThe Effect of Exchange Rate, Oil Prices and Global Inflation Shocks on Macroeconomic Variables for the Iranian Economy in the form of a DSGE Model
T he world economy has experienced a bulk of positive and negative shocks in crude oil prices and exchange rates over the years, and that global inflation has undergone some changes. Such shocks have affected the macroeconomic variables in the countries of the world and have challenged the economies of these countries, and have led them to take different measures to protect themselves agai...
متن کاملEvaluating In ation Targeting Using a Macroeconometric Model
This paper uses a structurally estimatedmacroeconometricmodel, denoted the MC model, to evaluate in ation targeting in the United States. Various interest rate rules are tried with differing weights on in ation and output, and various optimal control problems are solved using differing weights on in ation and output targets. Price-level targeting is also considered. The results show that 1) the...
متن کاملEVALUATING INFLATION TARGETING USING A MACROECONOMETRIC MODEL By
This paper uses a structurally estimatedmacroeconometricmodel, denoted the MC model, to evaluate in ation targeting in the United States. Various interest rate rules are tried with differing weights on in ation and output, and various optimal control problems are solved using differing weights on in ation and output targets. Price-level targeting is also considered. The results show that 1) the...
متن کاملPrice Stability as a Target for Monetary Policy: Dening and Maintaining Price Stability
This paper discusses how price stability can be de ned and how price stability can be maintained in practice. Some lessons for the Eurosystem are also considered. With regard to de ning price stability, the choice between price-level stability and low (including zero) ination and the decisions about the price index, the quantitative target and the role of output stabilization are examined. Wit...
متن کامل