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Policy Rules for In ation Targeting ¤
Policy rules that are consistent with in‡ation targeting are examined in a small macroeconometric model of the US economy. We compare the properties and outcomes of explicit “instrument rules” asExpand
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The Zero Bound in an Open Economy: A Foolproof Way of Escaping from a Liquidity Trap
The paper examines the transmission mechanism of monetary policy in an open economy with and without a binding zero bound on nominal interest rates. In particular, a foolproof way of escaping from aExpand
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Open-economy inflation targeting
The paper extends previous analysis of closed-economy inflation targeting to a small open economy with forward-looking aggregate supply and demand with some microfoundations, and with stylizedExpand
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In‡ation Forecast Targeting: Implementing and Monitoring In‡ation Targets
In‡ation targeting is shown to imply in‡ation forecast targeting: the central bank’s in‡ation forecast becomes an explicit intermediate target. In‡ation forecast targeting simpli…es bothExpand
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Open-Economy In‡ation Targeting
The paper extends previous analysis of closed-economy in‡ation targeting to a small open economy with forward-looking aggregate supply and demand with some microfoundations, and with stylizedExpand
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Optimal Monetary Policy in an Operational Medium-Sized DSGE Model
We show how to construct optimal policy projections in Ramses, the Riksbank’s openeconomy medium-sized DSGE model for forecasting and policy analysis. Bayesian estimation of the parameters of theExpand
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Credible Commitment to Optimal Escape from a Liquidity Trap; The Role of the Balance Sheet of an Independent Central Bank
An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange rate peg. This way, the central bank can implementExpand
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Credible Commitment to Optimal Escape from a Liquidity Trap: The Role of the Balance Sheet of an Independent Central Bank
An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange-rate peg. This way, the central bank can implementExpand
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Targeting Rules vs. Instrument Rules for Monetary Policy: What is Wrong with Mccallum and Nelson?
In their paper "Targeting versus Instrument Rules for Monetary Policy," McCallum and Nelson critique targeting rules for the analysis of monetary policy. Their arguments are rebutted here. First,Expand
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A Reform of the Eurosystem ’ s Monetary-Policy Strategy Is Increasingly Urgent
A reform of the Eurosystem’s inferior monetary-policy strategy is increasingly urgent, as noted by a number of observers. For instance, a recent extensive CEPR report finds the that the prominentExpand
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