Targets, zones, and asymmetries: a flexible nonlinear model of recent UK monetary policy

Reference:

Boinet, V. and Martin, C., 2008. Targets, zones, and asymmetries: a flexible nonlinear model of recent UK monetary policy. Oxford Economic Papers, 60 (3), pp. 423-439.

Related documents:

Official URL:

http://dx.doi.org/10.1093/oep/gpn008

Abstract

We estimate a flexible model of the behaviour of UK monetary policymakers in the era of inflation targeting based on a new representation of policymaker's preferences. This enables us to address a range of issues that are beyond the scope of the existing literature. We find a complex relationship between interest rates and inflation: interest rates are passive when inflation is close to the target but there is an increasingly vigorous response as inflation deviates further from the target.

Export

Actions (login required)