Download full text
(486.9Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-242437
Exports for your reference manager
Monetary policy rules in theory and in practice: evidence from the UK and the US
[journal article]
Abstract Given the large amount of interaction between research on monetary policy and its practice, this paper examines whether some simple monetary policy rules that have been proposed in the academic literature, part of which has originated from within central banks, provide a reasonable characterisation ... view more
Given the large amount of interaction between research on monetary policy and its practice, this paper examines whether some simple monetary policy rules that have been proposed in the academic literature, part of which has originated from within central banks, provide a reasonable characterisation of actual policy in the UK and the US. The paper finds that the simple rule that describes best actual US monetary policy is a speed limit rule with dynamics, whilst for the UK it is a forward-looking rule. The simpler dynamics in the UK's monetary policy rule are reflective of the lower persistence of inflation as a result of its policy of inflation targeting.... view less
Keywords
Great Britain; monetary policy; United States of America
Classification
Economic Policy
Free Keywords
Monetary policy; interest rate rule; Regelgebundene Politik; Taylor-Regel; Inflation Targeting
Document language
English
Publication Year
2009
Page/Pages
p. 2037-2046
Journal
Applied Economics, 41 (2009) 16
DOI
https://doi.org/10.1080/00036840701689496
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)