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Book/Printed Material Targeting rules vs. instrument rules for monetary policy what is wrong with McCallum and Nelson?

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Title

  • Targeting rules vs. instrument rules for monetary policy what is wrong with McCallum and Nelson?

Summary

  • "McCallum and Nelson's (2004) criticism of targeting rules for the analysis of monetary policy is rebutted. First, McCallum and Nelson's preference to study the robustness of simple monetary-policy rules is no reason at all to limit attention to simple instrument rules; simple targeting rules may have more desirable properties. Second, optimal targeting rules are a compact, robust, and structural description of goal-directed monetary policy, analogous to the compact, robust, and structural consumption Euler conditions in the theory of consumption. They express the very robust condition of equality of the marginal rates of substitution and transformation between the central bank's target variables. Third, under realistic information assumptions, the instrument-rule analogue to any targeting rule that McCallum and Nelson have proposed results in very large instrument-rate volatility and is also for other reasons inferior to a targeting rule"--National Bureau of Economic Research web site.

Names

  • Svensson, Lars E. O.
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2004.

Headings

  • -  Monetary policy--Mathematical models

Notes

  • -  Title from PDF file as viewed on 1/12/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005615493

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Svensson, Lars E. O, and National Bureau Of Economic Research. Targeting rules vs. instrument rules for monetary policy what is wrong with McCallum and Nelson?. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. https://aj.sunback.homes/item/2005615493/.

APA citation style:

Svensson, L. E. O. & National Bureau Of Economic Research. (2004) Targeting rules vs. instrument rules for monetary policy what is wrong with McCallum and Nelson?. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005615493/.

MLA citation style:

Svensson, Lars E. O, and National Bureau Of Economic Research. Targeting rules vs. instrument rules for monetary policy what is wrong with McCallum and Nelson?. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005615493/>.