Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209808 
Year of Publication: 
2002
Series/Report no.: 
Working Paper No. 2002/9
Publisher: 
Norges Bank, Oslo
Abstract: 
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.
Subjects: 
Taylor rules
monetary policy
simple rules
uncertain output gap
inflation-only rule
JEL: 
E58
E52
E47
Persistent Identifier of the first edition: 
ISBN: 
82-7553-199-3
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.