US Monetary Policy Rules : the Case for Asymmetric Preferences

  title={US Monetary Policy Rules : the Case for Asymmetric Preferences},
  author={Paolo Surico},
  • Paolo Surico
  • Published 2003
This paper investigates the empirical relevance of a new framework for monetary policy analysis in which decision makers are allowed to weight di¤erently positive and negative deviations of in‡ation and output from the target values. The speci...cation of the central bank objective is general enough to nest the symmetric quadratic form as a special case, thereby making the derived policy rule potentially nonlinear. This forms the basis of our identi...cation strategy which is used to develop a… CONTINUE READING