Creator: Roberds, William Series: Working paper (Federal Reserve Bank of Minneapolis. Research Department) Number: 298 Abstract:
The consequences of a straightforward monetary targeting scheme are examined for a simple dynamic macro model. The notion of "targeting" used below is the strategic one introduced by Rogoff (1985). Numerical simulations are used to demonstrate that for the model under consideration, monetary targeting is likely to lead to a deterioration of policy performance. These examples cast doubt upon the general efficacy of simple targeting schemes in dynamic rational expectations models.
关键词: Monetary policy, Monetary targeting, Rational expectations, and Macroeconomic model 学科: E52 - Monetary Policy and C61 - Optimization Techniques; Programming Models; Dynamic Analysis