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...
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| מחברים אחרים: | |
| פורמט: | כתב-עת |
| שפה: | English |
| יצא לאור: |
Washington, D.C. :
International Monetary Fund,
2005.
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| סדרה: | IMF Working Papers; Working Paper ;
No. 2005/148 |
| גישה מקוונת: | Full text available on IMF |
| סיכום: | 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. Under certain circumstances, estimations document an illusionary presence of a lagged interest rate, or of forward-looking behavior. Our results are consistent with the fact that several authors found very different versions of monetary policy rules, all fitting the U.S. data well. We also survey the literature, providing a list of issues complicating practical use of Taylor rules. |
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| תאור פריט: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| תיאור פיזי: | 1 online resource (30 pages) |
| פורמט: | Mode of access: Internet |
| ISSN: | 1018-5941 |
| גישה: | Electronic access restricted to authorized BRAC University faculty, staff and students |