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- George A. Kahn (2015): Taylor rules or target rules?
Kahn assesses whether the Federal Open Market Committee's policy actions are better characterized as following a policy-rule or target-rule approach.
RePEc:fip:fedkmb:00028 Save to MyIDEAS - Richard G. Pierse & Andrew P. Blake (2005): Time Consistency and Targeting Rules in Singular Rational Expectations Models
Recent policy formulation has emphasised targeting rules.
RePEc:sce:scecf5:166 Save to MyIDEAS - Hanson Michael S. & Kapinos Pavel S. (2008): Endogenous Persistence and the Performance of Inertial Targeting Rules
We investigate the optimality of monetary policy targeting rules in a macroeconomic model based on explicit micro-foundations for intrinsic persistence in inflation and real output. ... In this framework, inflation targeting closely approximates the optimal precommitment policy for empirically relevant parameter values. Alternative policy rules, such as nominal income growth targeting, "speed-limit" targeting, or price level targeting, do not perform as well. Previous research has demonstrated lower social welfare losses with these alternative targeting rules; such findings are shown to be primarily a consequence of assuming the central bank minimizes a simple social loss function that is not consistent with the micro-foundations of a model with intrinsic persistence.
RePEc:bpj:bejmac:v:8:y:2008:i:1:n:11 Save to MyIDEAS - Kalaivany Natarajan & Jiuyong Li & Andy Koronios (2012): Detecting data inconsistencies by multiple target rules
One of the main techniques is association rule mining. ... In this paper, we use multiple target rules to identify inconsistent values. Multiple target rules are an extension of association rules and use a set of disjunctive attribute values as consequences. Traditional association rules predict inconsistent values by single or multiple conjunctive RHS rules. ... Prediction power of multiple disjunctive rules is higher than the traditional association rules.
RePEc:ids:ijbsre:v:6:y:2012:i:3:p:296-312 Save to MyIDEAS - Michael S. Hanson & Pavel Kapinos (2006): Targeting Rules with Intrinsic Persistence and Endogenous Policy Inertia
We investigate the optimality of monetary policy targeting rules in a macroeconomic model based on explicit micro-foundations for intrinsic persistence in inflation and real output. ... In this framework, inflation targeting closely approximates the optimal precommitment policy for empirically relevant parameter values. Alternative policy rules, such as nominal income growth targeting, “speed-limit” targeting, or price level targeting, do not performas well. Previous research has demonstrated lower social welfare losses with these alternative targeting rules; such findings are shown to be primarily a consequence of assuming the central bank minimizes a simple social loss function that is not consistent with the micro-foundations of a model with intrinsic persistence.
RePEc:wes:weswpa:2006-019 Save to MyIDEAS - Benigno, Gianluca & Benigno, Pierpaolo (2004): Designing target rules for international monetary policy cooperation
Despite this result, simple targeting rules that involve only targets for the growth of output and for both domestic GDP and CPI inflation rates can replicate the cooperative allocation.
RePEc:ehl:lserod:3759 Save to MyIDEAS - Gianluca Benigno & Pierpaolo Benigno (2004): Designing Target Rules for International Monetary Policy Cooperation
Despite this result, simple targeting rules that involve only targets forthe growth of output and for both domestic GDP and CPI inflation rates can replicate the cooperative allocation.
RePEc:cep:cepdps:dp0666 Save to MyIDEAS - Benigno, Gianluca & Benigno, Pierpaolo (2003): Designing targeting rules for international monetary policy cooperation
Despite this result, simple targeting rules that involve only targets for the growth of output and for both domestic GDP and CPI inflation rates can replicate the cooperative allocation.
RePEc:ecb:ecbwps:2003279 Save to MyIDEAS - Froyen, Richard T. & Guender, Alfred V. (2010): Explicit instrument versus targeting rules in the backward-looking model
In the backward-looking model, an explicit instrument rule is almost as efficient as a target rule. An explicit instrument rule leads to a more stable real rate of interest and hence an output stabilization bias compared to the target rule.
RePEc:eee:ecolet:v:106:y:2010:i:1:p:64-66 Save to MyIDEAS - Alfred Guender (2011): CPI Inflation Targeting and the UIP Puzzle: An Appraisal of Instrument and Target Rules
Employing an optimizing framework, this paper shows that a target rule dominates a simple instrument rule when the focus of monetary policy is on CPI inflation. The target rule approach produces a systematic relationship between the current CPI inflation rate and the lagged policy instrument that renders the former immune to the stochastic risk premium. No matter how policy parameters are set, the optimal simple instrument rule cannot replicate the superior stabilization results achieved by the target rule approach. The optimal simple instrument rule also fails to account for the UIP puzzle. In contrast, the target rule approach can motivate the widely reported phenomenon whereby high interest rate currencies tend to appreciate.
RePEc:cbt:econwp:11/18 Save to MyIDEAS