Efficiency of the Monetary Policy and Stability of Central Bank Preferences. Empirical Evidence for Peru

Gabriel Rodríguez

No 2007-008, Working Papers from Banco Central de Reserva del Perú

Abstract: Following the approach suggested by Favero and Rovelli (2003), I estimate a three-equations system for different sub-samples for Peru. The results indicate that the preferences of the monetary authority have changed between the diffeerent regimes. In particular, the parameter associated to the implicit target of in‡ation has been reduced significantly. The macroeconomic conditions from the side of the aggregate demand have been more favorable than those related to the aggregate supply. The standard deviation of the monetary rule suggests that it has been conducted successfully in the last regime.

Keywords: Interest Rate Rule; Structural Breaks; Inflation Target-ing; Output Gap; Preferences; Macroeconomic Shocks (search for similar items in EconPapers)
JEL-codes: C2 E5 (search for similar items in EconPapers)
Date: 2007-05
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

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