Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127997
Authors: 
Cuche, Nicolas A.
Year of Publication: 
2000
Series/Report no.: 
Working Paper, Study Center Gerzensee 00.10
Abstract: 
We estimate monetary policy rules in Switzerland for 1981-1997. In addition to an inflation gap, we find that forward-looking rules with output and exchange rate gaps nicely fit monetary aggregates as well as the call rate. We split the sample in 1990 when the Swiss National Bank replaced annual targets by medium-term targets for its official policy instrument, the monetary base. We find then that our rule best describes M0 and M1 before 1990 and only the call rate after 1990. Moreover, such small open economy rules are robust with respect to different central bank information sets.
Subjects: 
Exchange rate
Monetary policy instrument
Output gap
Robustness
Rule
Switzerland
JEL: 
E52
E58
Document Type: 
Working Paper

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