Central Bank Losses and Monetary Policy Rules: A DSGE Investigation

  title={Central Bank Losses and Monetary Policy Rules: A DSGE Investigation},
  author={Jonathan Benchimol and Andr{\'e} Fourçans},
  journal={Monetary Economics: Central Banks - Policies \& Impacts eJournal},
Abstract Central banks' monetary policy rules being consistent with policy objectives are a fundamental of applied monetary economics. We seek to determine, first, which of the central bank's rules are most in line with the historical data for the US economy and, second, what policy rule would work best to assist the central bank in reaching its objectives via several loss function measures. We use Bayesian estimations to evaluate twelve monetary policy rules from 1955 to 2017 and over three… Expand
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