Eurosystem Monetary Targeting: Lessons from U.S. Data
1999 (English)Report (Other academic)
Using small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient, with both higher inflatoin and output variability. This is true even with a deterministic money demand formulation. in this framework, there is thus no support for the prominent role given to money growth in the Eurosystem's monetary policy strategy.
Place, publisher, year, edition, pages
Stockholm: IIES , 1999. , 35 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 672
inflation targeting, monetary targeting, ECB
IdentifiersURN: urn:nbn:se:su:diva-41097OAI: oai:DiVA.org:su-41097DiVA: diva2:328305