ABSTRACT Policy tools are a critical part of policy-making, providing the ‘means’ by which policy ‘ends’ achieved. Knowledge their different origin, nature and capabilities is vital for understanding formulation decision-making, they have been subject inquiry in many policy-related disciplines sector-specific studies. Yet crucial aspects remain unexplored. Existing studies on used tend to focus...

Determining how monetary policy makers react to changes in key economic variables has been of major interest to monetary economists. Estimates of monetary policy rules (reaction functions) are a widely used method for doing this. Behavior differs under different policy regimes, as in rule-based systems or chronic inflation. In practice, estimates of instrument rules have been used to descri...