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dc.contributor.authorFair, Ray C.en_US
dc.date.accessioned2009-01-28T15:06:04Z-
dc.date.available2009-01-28T15:06:04Z-
dc.date.issued2007en_US
dc.identifier.citationEconomics: The Open-Access, Open-Assessment E-Journal 1 2007-8 1-52 doi:10.5018/economics-ejournal.ja.2007-8-
dc.identifier.pidoi:10.5018/economics-ejournal.ja.2007-8-
dc.identifier.urihttp://hdl.handle.net/10419/18006-
dc.description.abstractThis paper uses a structurally estimated macroeconometric model, denoted the MC model, to evaluate inflation targeting in the United States. Various interest rate rules are tried with differing weights on inflation and output, and various optimal control problems are solved using differing weights on inflation and output targets. Price-level targeting is also considered. The results show that 1) there are output costs to inflation targeting, especially for price shocks, 2) price-level targeting is dominated by inflation targeting, 3) the estimated interest rate rule of the Fed (in Table 4) is consistent with the Fed placing equal weights on inflation and unemployment in a loss function, 4) the estimated interest rate rule does a fairly good job at lowering variability, and 5) considerable economic variability is left after the Fed has done its best. Overall, the results suggest that the Fed should continue to behave as it has in the past.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofserieseconomics - The Open-Access, Open-Assessment E-Journal 2007-8en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordinflation targetingen_US
dc.subject.keywordinterest rate rulesen_US
dc.subject.keywordoptimal controlen_US
dc.subject.stwInflation Targetingen_US
dc.subject.stwÖkonometrisches Makromodellen_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwTheorieen_US
dc.subject.stwUSAen_US
dc.titleEvaluating Inflation Targeting Using a Macroeconometric Modelen_US
dc.typeArticleen_US
dc.identifier.ppn538177691en_US
dc.identifier.urlhttp://www.economics-ejournal.org/economics/journalarticles/2007-8-
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.en-
dc.identifier.repecRePEc:zbw:ifweej:5743-
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles

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