A proposed framework for monetary policy

Anthony Garratt and Stephen Hall

Applied Economics Letters, 1995, vol. 2, issue 5, 135-138

Abstract: A proposal is outlined for reconciling the use of many indicators or instruments in setting monetary policy, with the need for clarity and openness. The proposal draws on the literature of unobserved component models (Stock and Watson, 1991), constructing the unobserved component using the Kalman Filter, from a set of unobservable series. The technique used allows for cointegration between variables and for the appropriate specification of stochastic trends (Garratt, Hall and Henry, 1992). In the empirical application a single measure of the tightness of monetary policy is derived from a range of observable indicators based on monthly UK data for the period 1978-92.

Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:apeclt:v:2:y:1995:i:5:p:135-138

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/135048595357456

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().