Evaluating alternative monetary policy rules

• 成果类型: Article
• 署名作者: Fair, RC; Howrey, EP
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(96)01279-2
• 发表日期: 1996
• 页码: 173-193
• 关键词: Monetary rules; optimal fed behavior

摘要

This paper examines monetary policy from an optimal control perspective. Five loss functions are minimized for each of five models, and the results are compared. The basic ('true') loss function targets inflation and unemployment. The other loss functions target, respectively, inflation alone, unemployment alone, nominal growth alone, and real growth alone. The five models are two small structural models, two VAR models, and a large structural model. A numerical procedure is presented that can handle a variety of loss functions and models.