Eurosystem Monetary Targeting: Lessons from U.S. Data

Glenn Rudebusch and Lars Svensson

No 7179, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: E42 E52 (search for similar items in EconPapers)
Date: 1999-06
New Economics Papers: this item is included in nep-eec and nep-mon
Note: ME
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Published as Rudebusch, Glenn D. and Lars E. O. Svensson. "Eurosystem Monetary Targeting: Lessons From U.S. Data," European Economic Review, 2002, v46(3,Mar), 417-442.

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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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