Eurosystem Monetary Targeting: Lessons from U.S. Data

Glenn Rudebusch and Lars Svensson

Working Papers from Stockholm - International Economic Studies

Abstract: Using a small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient, with both higher inflation and output variability. This is true even with a deterministic money demand formulation. In this framework, there is thus no support for the prominent role given to money growth in the Eurosystem's monetary policy strategy.

Keywords: INFLATION; MONETARY POLICY; CENTRAL BANKS (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1999
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Citations: View citations in EconPapers (43)

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Related works:
Journal Article: Eurosystem monetary targeting: Lessons from U.S. data (2002)
Working Paper: Eurosystem Monetary Targeting: Lessons from US Data (2000)
Working Paper: Eurosystem monetary targeting: lessons from U.S. data (1999)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:stocin:672

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