Monetary Policy Reaction Functions and Sterilization Policies

D.S. Wijesinghe

in Staff Papers from South East Asian Central Banks (SEACEN) Research and Training Centre

Abstract: The paper reviews the literature on the use of the reaction function in analysing the behavior of the monetary authorities in general and sterilization policies in particular. The major works on the reaction function approach to the study of the behavior of monetary authorities are introduced in Section I, highlighting the problems associated with this approach. Section II reviews related literature with particular reference to sterilization policies, while Section III concludes the paper.

Date: 1986
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