Policy Rules for Inflation Targeting

Glenn Rudebusch and Lars Svensson

No 6512, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Policy rules that are consistent with inflation targeting are examined in a small macroeconomic model of the US economy. We compare the properties and outcomes of explicit instrument rules' as well as targeting rules.' The latter, which imply implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. We find that inflation forecasts are central for good policy rules under inflation targeting. Some simple instrument and targeting rules do remarkably well relative to the optimal rule; others, including some that are often used as representing inflation targeting, do less well.

JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 1998-04
Note: IFM ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (186)

Published as Glenn D. Rudebusch & Lars E. O. Svensson, 1998. "Policy rules for inflation targeting," Proceedings, Federal Reserve Bank of San Francisco, issue Mar.
Published as Monetary Policy Rules, Taylor, John B., ed., Chicago: University of Chicago Press, 1999.
Published as Policy Rules for Inflation Targeting , Glenn Rudebusch, Lars E.O. Svensson. in Monetary Policy Rules , Taylor. 1999

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Related works:
Chapter: Policy Rules for Inflation Targeting (1999)
Journal Article: Policy rules for inflation targeting (1998)
Working Paper: Policy Rules for Inflation Targeting (1998)
Working Paper: Policy rules for inflation targeting (1998)
Working Paper: Policy Rules for Inflation Targeting (1998)
Working Paper: Policy Rules for Inflation Targeting (1998)
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