Règle de Taylor vs Règle-icm. Application à la zone euro

Grégory Levieuge

Revue économique, 2006, vol. 57, issue 1, 85-121

Abstract: The aim of this article is to determine what is the optimal strategy of central banks (in particular of ecb) towards the exchange rate. According to the optimal monetary policy rules determined from a two-country (ea-usa) hybrid model with rational expectations, monetary authorities have to react to the exchange rate, in addition to the inflation and the output gap. This result confirms the superiority of strategies built around a Monetary Conditions Index (mci) on Taylor rules. Besides, the sensitive analysis of mci-rules according to the nature of shocks does not allow to assert that theses rules imply systematically a conflict of objective in case of real shocks. But the uncertainty which characterizes the equilibrium value of the exchange rate tends to minimize, even to annihilate, the role played by the exchange rate in the optimal monetary policy strategy. Classification JEL : E43, E47, E5.

JEL-codes: E43 E47 E5 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=RECO_571_121 (application/pdf)
http://www.cairn.info/revue-economique-2006-1-page-85.htm (text/html)
free

Related works:
Working Paper: Règle de Taylor vs Règle-ICM: Applications à la zone euro (2006)
Working Paper: Règle de Taylor vs Règle-ICM: Application à la Zone Euro (2003)
Working Paper: Règle de Taylor vs Règle-ICM: Application à la Zone Euro (2002)
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: https://EconPapers.repec.org/RePEc:cai:recosp:reco_571_121

Access Statistics for this article

More articles in Revue économique from Presses de Sciences-Po
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().