Endogenous objectives and the evaluation of targeting rules for monetary policy

• 成果类型: Article
• 署名作者: Walsh, CE
• 署名单位: University of California System; University of California Santa Cruz; Federal Reserve System - USA; Federal Reserve Bank - San Francisco
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.07.003
• 发表日期: 2005
• 页码: 889-911
• 关键词: Monetary policy; targeting rules; Robustness

摘要

Recent research in monetary economics has followed the advice of McCallum [1988. Robustness properties of a rule for monetary policy. Carnegie-Rochester Conference Series oil Public Policy 29, 173-203] and investigated the robustness properties of monetary policy rules by evaluating them in a variety of models. Evaluation across models is typically based on an exogenously specified loss function. However, the theory on which many recent monetary policy models are based implies that changes in the structure of the model also have consequences for the policy objectives the central bank should pursue. Objectives are endogenous, not exogenous to the model. In this paper, I investigate the impact of endogenous objectives oil the evaluation of targeting rules for monetary policy. (c) 2005 Elsevier B.V. All rights reserved.