Monetary Policy in the United States under Flexible Exchange Rates

David Papell

American Economic Review, 1989, vol. 79, issue 5, 1106-16

Abstract: This paper estimates and evaluates monetary policy rules within the context of a structural open economy macroeconomic model of the United States under flexible exchange rates. The major result is that a monetary policy rule, which stabilizes the rate of growth of nominal GNP, receives considerable empirical support. The rule provides a better fit than a number of alternatives, including strict inflation stability, strict output stability, and real exchange rate stabilization. Copyright 1989 by American Economic Association.

Date: 1989
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Working Paper: MONETARY POLICY IN THE UNITES STATES UNDER FLEXIBLE EXCHANGE RATES (1988)
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