Arbeitspapier

Quantitative goals for monetary policy

We study empirically the macroeconomic effects of an explicit de jure quantitative goal for monetary policy. Quantitative goals take three forms: exchange rates, money growth rates, and inflation targets. We analyze the effects on inflation of both having a quantitative target, and of hitting a declared target; we also consider effects on output volatility. Our empirical work uses an annual data set covering 42 countries between 1960 and 2000, and takes account of other determinants of inflation (such as fiscal policy, the business cycle, and openness to international trade), and the endogeneity of the monetary policy regime. We find that both having and hitting quantitative targets for monetary policy is systematically and robustly associated with lower inflation. The exact form of the monetary target matters somewhat (especially for the sustainability of the monetary regime), but is less important than having some quantitative target. Successfully achieving a quantitative monetary goal is also associated with less volatile output.

Sprache
Englisch

Erschienen in
Series: ECB Working Paper ; No. 615

Klassifikation
Wirtschaft
Monetary Policy
Thema
business cycle
exchange
Growth
inflation
Money
rate
TARGET
transparency
Geldpolitik
Regelbindung versus Diskretion
Inflationssteuerung
Schätzung
Welt
Kleinste-Quadrate-Methode

Ereignis
Geistige Schöpfung
(wer)
Fatás, Antonio
Mihov, Ilian
Rose, Andrew K.
Ereignis
Veröffentlichung
(wer)
European Central Bank (ECB)
(wo)
Frankfurt a. M.
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Fatás, Antonio
  • Mihov, Ilian
  • Rose, Andrew K.
  • European Central Bank (ECB)

Entstanden

  • 2006

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