Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83895 
Year of Publication: 
2007
Series/Report no.: 
Cardiff Economics Working Papers No. E2007/13
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
Abstract: 
Given the large amount of interaction between research on monetary policy and its practice, this paper examines whether some simple monetary policy rules that have been proposed in the academic literature, part of which has originated from within central banks, provide a reasonable characterisation of actual policy in the UK and the US. The paper finds that the simple rule that describes best actual US monetary policy is a speed limit rule with dynamics, whilst for the UK it is a forward-looking rule. The simpler dynamics in the UKís monetary policy rule are reflective of the lower persistence of inflation as a result of its policy of inflation targeting.
Document Type: 
Working Paper

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