Modelling Monetary Policy: Inflation Targeting in Practice
Martin, C. and Milas, C., 2004. Modelling Monetary Policy: Inflation Targeting in Practice. Economica, 71 (282), pp. 209-221.
Related documents:This repository does not currently have the full-text of this item.
You may be able to access a copy if URLs are provided below.
This paper estimates a simple structural model of monetary policy in the UK focusing on the policy of inflation targeting introduced in 1992. We find that: (i) the adoption of inflation targeting led to significant changes in monetary policy; (ii) post-1992 monetary policy is asymmetric as policy-makers respond more to upward deviation of inflation away from the target; (iii) post-1992 policy-makers may be attempting to keep inflation within the 1.4%–2.6% range rather than pursuing a point target of 2.5% and (iv) the response of monetary policy to inflation is nonlinear as interest rates respond more when inflation is further from the target.
|Creators||Martin, C.and Milas, C.|
|Departments||Faculty of Humanities & Social Sciences > Social & Policy Sciences|
Faculty of Humanities & Social Sciences > Economics
Actions (login required)