Assessing monetary rules performance across EMU countries

Carlo Altavilla ()

International Journal of Finance & Economics, 2003, vol. 8, issue 2, pages 131-151

Abstract: The topic covered in this paper is the performance of different monetary policy rules used as guidelines in practical policy making. To this end, different rules are evaluated using alternative econometrics techniques. A comparative analysis is made of the ability of the rules to correspond to the historical central bank behaviour and of the volatility of output, inflation and interest rate changes that they imply. The study is conducted of the EMU countries. The results suggest that simple rules perform quite well and that the advantages obtained from adopting an optimal control-based rule are not so great. Moreover, the addition of a forward-looking dimension and of an interest rate smoothing term in the reaction function seems to improve the performance of the rules. Copyright © 2003 John Wiley & Sons, Ltd.

Date: 2003
View list of references View citations in EconPapers

Downloads: (external link)
http://hdl.handle.net/10.1002/ijfe.199 Link to full text; subscription required (text/html)

Related works:
Working Paper: Assessing Monetary Rules Performance across EMU Countries (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ijf:ijfiec:v:8:y:2003:i:2:p:131-151

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Series data maintained by Christopher F. Baum ().