Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18006 
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dc.contributor.authorFair, Ray C.en
dc.date.accessioned2009-01-28T15:06:04Z-
dc.date.available2009-01-28T15:06:04Z-
dc.date.issued2007-
dc.identifier.citation|aEconomics: The Open-Access, Open-Assessment E-Journal|c1864-6042|v1|h2007-8|nKiel Institute for the World Economy (IfW)|lKiel|y2007|p1-52en
dc.identifier.pidoi:10.5018/economics-ejournal.ja.2007-8en
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
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordinflation targetingen
dc.subject.keywordinterest rate rulesen
dc.subject.keywordoptimal controlen
dc.subject.stwInflation Targetingen
dc.subject.stwÖkonometrisches Makromodellen
dc.subject.stwUngleichgewichtstheorieen
dc.subject.stwTheorieen
dc.subject.stwUSAen
dc.titleEvaluating Inflation Targeting Using a Macroeconometric Model-
dc.typeArticleen
dc.identifier.ppn538177691en
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen
dc.identifier.repecRePEc:zbw:ifweej:5743en
econstor.citation.journaltitleEconomics: The Open-Access, Open-Assessment E-Journalen
econstor.citation.issn1864-6042en
econstor.citation.volume1en
econstor.citation.issue2007-8en
econstor.citation.publisherKiel Institute for the World Economy (IfW)en
econstor.citation.publisherplaceKielen
econstor.citation.year2007en
econstor.citation.startpage1en
econstor.citation.endpage52en

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