Eurosystem monetary targeting: lessons from U.S. data

Glenn Rudebusch and Lars Svensson

No 99-13, Working Paper Series from Federal Reserve Bank of San Francisco

Abstract: Using a small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient, with both higher inflation and output variability. This is true even with a deterministic money demand formulation. In this framework, there is thus no support for the prominent role given to money growth in the Eurosystem's monetary policy strategy.

Keywords: Monetary policy; Europe (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Eurosystem monetary targeting: Lessons from U.S. data (2002)
Working Paper: Eurosystem Monetary Targeting: Lessons from US Data (2000)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
Working Paper: Eurosystem Monetary Targeting: Lessons from U.S. Data (1999)
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