Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82494
Authors: 
Rudebusch, Glenn D.
Svensson, Lars E. O.
Year of Publication: 
1999
Series/Report no.: 
Sveriges Riksbank Working Paper Series 92
Abstract: 
Using a small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient, with both higher inflation and output variability. This is true even with a deterministic money demand formulation. In this framework, there is thus no support for the prominent role given to money growth in the Eurosystem's monetary policy strategy.
Subjects: 
Inflation targeting
Monetary targeting
ECB
JEL: 
E42
E52
E58
Document Type: 
Working Paper

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