Nominal income targeting in an open-economy optimizing model

• 成果类型: Article; Proceedings Paper
• 署名作者: McCallum, BT; Nelson, E
• 署名单位: Carnegie Mellon University; Bank of England
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(99)00005-7
• 发表日期: 1999
• 页码: 553-578
• 关键词: policy rules; nominal income targeting; open economy; optimizing model; simulations; rational expectations

摘要

This paper presents simulation results regarding the performance of nominal income targeting, a monetary policy rule that sets interest rates in response to deviations of nominal GDP growth from a target path. The macroeconomic model is one in which agents solve dynamic optimization problems with rational expectations, but in an environment with slow price adjustments. In the present version, consumption choices reflect habit formation and the economy is open to international flows of goods and securities. When calibrated to quarterly US data, the model's results suggest that nominal income targeting performs well in relation to inflation targeting and Taylor rules. (C) 1999 Elsevier Science B.V. All rights reserved.