The Use and Abuse of Taylor Rules : How Precisely Can We Estimate Them? /

This paper draws attention to inconsistencies in estimating simple monetary policy rules and their implications for policy advice. We simulate a macroeconomic model with a backward reaction function similar to Taylor (1993). We estimate different versions of a policy rule, using these simulated data...

Full description

Bibliographic Details
Main Author: Tchaidze, Robert
Other Authors: Carare, Alina
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2005.
Series:IMF Working Papers; Working Paper ; No. 2005/148
Online Access:Full text available on IMF