Search Results
Showing results 1 to 2 of approximately 2.
(refine search)
Journal Article
ECB interest-rate smoothing
Journal Article
A close look at model-dependent monetary policy design
This article first explores the implications of model specification on the design of targeting rules in a world of model certainty. As a general prescription, a targeting rule must counterbalance the private-sector dynamics: The more backward-looking behavior is observed in either the output gap or inflation, the more forward-looking monetary policy should be. Likewise, a more forward-looking economy would require stronger backward-looking reactions of the nominal interest rate to the output gap or inflation. The article also analyzes the effects of implementing monetary policy in an ...