reputation of a monetary’s authority, is an agents believe on his to control of deviation between targeting inflation and observed inflation. on one hand , a monterey’s authority, can throw agent’s trust to his polices, leading to lower inflation expectations and inflation. but on the other hand, government pressure on the monetary authority to do discretionary monetary policy( such as creation...

Inflation targeting has become the predominant monetary approach across the globe. In this paper, we examine the inflation targeting experience in developing countries. We estimate the effects of inflation targeting on macroeconomic performance in these economies. The approach is based on the methodology applied by Pétursson (2005) which uses panel data to assess the effects of inflation target...

There is widespread agreement that price stability (in practice, low and stable inflation) should be an objective of monetary policy. This agreement is reflected both in the mandates set for monetary policy by governments and in the practice of central banks. Several other important questions about the objectives for monetary policy are less settled: Should there be other objectives? If there a...

Finding a monetary regime that can deliver some form of price stability, as well as satisfactory economic performance, always has been explained more convincingly in theory than in practice. Consequently, governments have, over time, experimented with policies ranging from some metallic standard (for example, gold, silver, or bimetallic) to various forms of exchange rate pegging (for example, B...

any features of the German monetary targeting regime are also key elements of inflation targeting in the other countries examined in this study. Indeed, as pointed out in Bernanke and Mishkin (1997), Germany might best be thought of as a “hybrid” inflation targeter, in that it has more in common with inflation targeting than with a rigid application of a monetary targeting rule. The German expe...

in this paper, by using dynamic stochastic general equilibrium, optimal monetary rule derived for central bank of iran. monetary transmission mechanism of the model includes four equations, aggregate demand, aggregate supply, oil price and taylor rule. we have proved that dynamic structure of aggregate demand relation, regarding monetary inflation in iran, is a function of money growth rate. wi...

Ten years of inflation targeting in New Zealand is used to test whether monetary policy conforms to the simple rules that have been recommended in the literature. While a Taylor rule with the standard parameters used in the US describes New Zealand monetary policy quite well, the Reserve Bank has focused more strongly on price stability, as required by its Policy Targets Agreements. Monetary po...