Buscar
Mostrando ítems 21-30 de 51
Monetary policy, interest rate rules, and inflation targeting: some basic equivalences
Monetary policy in small open economies is typically cast as a choice between an exchange rate anchor (fixed or predetermined exchange rates) and a money anchor (floating exchange rates). Under such regimes, the growth rate of the nominal anchor is set according to the desired long-run inflation rate. ...
Policy rules and external shocks
The decade since 1990 has been a period of innovation in monetary policy. Around the world, many countries have adopted inflation targeting as their basic policy framework. Different countries have tried different techniques for achieving inflatio targets, such as different choices of policy instruments.
Sources of uncertainty in conducting monetary policy in Chile
Monetary policy is made in an environment of substantial uncertainty. Consequently, academic researchers have sought to formally demonstrate the implications of uncertainty, as well as the ways in which central banks can manage it. The theoretical literature on uncertainty distinguishes between three ...
The monetary policy transmission mechanism and policy rules in Canada
The inflation targeting regime in place in Canada requires a clear understanding of the monetary policy transmission mechanism and a way to exploit knowledge of that mechanism in making policy decisions. This paper describes the Bank of Canada's current undestanding of the monetary policy transmission ...
Alternative monetary rules in the open-economy: a welfare-based approach
How do central banks choose among alternative monetary polocies? In this paper we analyze that question for an open economy following an interest rate rule. Many issues remain controversial in the design of such a rule. If inflation is targeted, as it presumably is, should the domestic interest rate ...
Monetary policy under flexible exchange rates: an introduction to inflation targeting
Both policymakers and economists increasingly accept that the main medium- to long-run goal of monetary policy is the pursuit of price stability, defined as maintaining a low and stable rate of inflation. A high and variable inflation rate is socially and economically costly.
Response to external and inflation schocks in a small open economy
Monetary policy design has experienced major changes over the last twenty years. These changes had their origin in changes in macroeconomic theory, a better understanding of the importance of achieving and maintaining low inflation, and the abandonment of fixed pegs in favor of floating exchange rate ...
The monetary transmission mechanism and the evaluation of monetary policy rules
This paper explores the connection between the monetary transmission mechanism -the channel through which a change in monetary policy affects the economy- and the choice of monetary policy rules to guide central bank decisions. Differente views of the monetary transmission mechanism are readily apparent ...
The monetary transmission mechanism in the United Kingdom: pass-through and policy rules
A number of recent papers have used policy simulations from small empirical macroeconomic models to assess the efficacy of inflation targeting or, more precisely, inflation forecast targeting (Svensson, 1997a). These include Rudebush and Svensson (1999). The models used to undertake these simulations ...
Under what conditions can inflation targeting be adopted? The experience of emerging markets
Inflation targeting has become an increasingly popular monetary policy strategy, with 21 countries (8 industrial and 13 emerging market economies) targeting inflation and others considering following in their footsteps. Numerous studies of inflation targeting in industrial countries have been conducted, ...