Arbeitspapier
Simple Monetary Policymaking Without the Output Gap
The performance of a simple monetary policy rule, which does not rely on explicit information about the output gap but instead uses the change in the rate of inflation as a proxy for the output gap, is explored in a simple model of the US economy. The rule is found to outperform an optimised Taylor rule under a reasonable specification of real-time output-gap uncertainty. The relative performance improves if the inflation process is more backward-looking, if demand or cost-push shocks are less prevalent, and if the output gap has a stronger effect on inflation.
- ISBN
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82-7553-199-3
- Language
-
Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2002/9
- Classification
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Wirtschaft
Central Banks and Their Policies
Monetary Policy
Money and Interest Rates: Forecasting and Simulation: Models and Applications
- Subject
-
Taylor rules
monetary policy
simple rules
uncertain output gap
inflation-only rule
- Event
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Geistige Schöpfung
- (who)
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Leitemo, Kai
Lønning, Ingunn
- Event
-
Veröffentlichung
- (who)
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Norges Bank
- (where)
-
Oslo
- (when)
-
2002
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Leitemo, Kai
- Lønning, Ingunn
- Norges Bank
Time of origin
- 2002
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