haku: @author Gali, J. / yhteensä: 14
viite: 10 / 14
| Tekijä: | Clarida, R. Gali, J. Gertler, M. |
| Otsikko: | Monetary policy rules in practice: Some international evidence |
| Lehti: | European Economic Review
1998 : JUN, VOL. 42:6, p. 1033-1067 |
| Asiasana: | MONETARY POLICY INTEREST RATES EXCHANGE RATES |
| Kieli: | eng |
| Tiivistelmä: | The paper reports estimates of monetary policy reaction functions for two sets of countries: 1. the G3 (the US, Germany, Japan) and 2. the E3 (the UK, France and Italy). It is found that since 1979 each of the G3 central banks has pursued an implicit form of inflation targeting, which may account for the great success of monetary policy in these countries over this period of time. The evidence also suggests that these central banks have been forward looking. Further on, using the Bundesbank's policy rule as a benchmark, it is found that at the time of the EMS collapse, interest rates in each of the E3 countries were much higher than domestic macroeconomic conditions warranted. In summarum, the results lend support to the view that a form of inflation targeting may be superiour to fixing exchange rates. |
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