Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75613
Authors: 
Muscatelli, Anton
Tirelli, Patrizio
Trecroci, Carmine
Year of Publication: 
2000
Series/Report no.: 
CESifo Working Paper 278
Abstract: 
We estimate forward-looking interest-rate reaction functions for the G3 economies and for a group of countries which recently adopted inflation targets. Some significant shifts in the conduct of monetary policy are detected in the G3 countries, especially in the US A and Japan. In contrast with popular wisdom, it is only since the 1990s that policies in these countries begin to look consistent with an inflation-targeting regime. In addition, the introduction of inflation targeting and central bank reforms in countries like Sweden, Canada and New Zealand has not led to major changes in the way in which central banks react to the objectives of economic policy. In all cases changes in policy behaviour pre-date the introduction of inflation targets and central bank reforms. The paper challenges the one-size-fits-all attitude towards modern central bank policymaking which permeates a great deal of the current literature.
Subjects: 
Monetary policy
inflation targets
central bank reform
reaction functions
interest rates
Document Type: 
Working Paper

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