Monetary policy rules across OECD countries

Monetary policy rules across OECD countries

This paper provides empirical evidence on cross-country monetary policy rules for the major OECD countries during the 1979Q2 to 1998Q4 period. The results point to a convergence of monetary policy practices towards a strict anti-inflation policy in the post-1987Q3 period. From 1979Q3 to 1987Q2, there is evidence of an accommodative monetary policy. Comparing the performance of alternative measures of inflation, PPI appears to have played an implicit role of target inflation rate in the latter period. Such a policy avoids unnecessary fluctuations in the nominal interest rate, which only reacts to disturbances that affect domestic variables.

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Main Author: Divino,Jose Angelo
Format: Digital revista
Language:English
Published: Fundação Getúlio Vargas 2009
Online Access:http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402009000100005
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spelling oai:scielo:S0034-714020090001000052011-10-04Monetary policy rules across OECD countriesDivino,Jose Angelo Interest Rate Rule Dynamic Panel Data Monetary Policy Inflation Stabilization This paper provides empirical evidence on cross-country monetary policy rules for the major OECD countries during the 1979Q2 to 1998Q4 period. The results point to a convergence of monetary policy practices towards a strict anti-inflation policy in the post-1987Q3 period. From 1979Q3 to 1987Q2, there is evidence of an accommodative monetary policy. Comparing the performance of alternative measures of inflation, PPI appears to have played an implicit role of target inflation rate in the latter period. Such a policy avoids unnecessary fluctuations in the nominal interest rate, which only reacts to disturbances that affect domestic variables.info:eu-repo/semantics/openAccessFundação Getúlio VargasRevista Brasileira de Economia v.63 n.1 20092009-03-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402009000100005en10.1590/S0034-71402009000100005
institution SCIELO
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country Brasil
countrycode BR
component Revista
access En linea
databasecode rev-scielo-br
tag revista
region America del Sur
libraryname SciELO
language English
format Digital
author Divino,Jose Angelo
spellingShingle Divino,Jose Angelo
Monetary policy rules across OECD countries
author_facet Divino,Jose Angelo
author_sort Divino,Jose Angelo
title Monetary policy rules across OECD countries
title_short Monetary policy rules across OECD countries
title_full Monetary policy rules across OECD countries
title_fullStr Monetary policy rules across OECD countries
title_full_unstemmed Monetary policy rules across OECD countries
title_sort monetary policy rules across oecd countries
description This paper provides empirical evidence on cross-country monetary policy rules for the major OECD countries during the 1979Q2 to 1998Q4 period. The results point to a convergence of monetary policy practices towards a strict anti-inflation policy in the post-1987Q3 period. From 1979Q3 to 1987Q2, there is evidence of an accommodative monetary policy. Comparing the performance of alternative measures of inflation, PPI appears to have played an implicit role of target inflation rate in the latter period. Such a policy avoids unnecessary fluctuations in the nominal interest rate, which only reacts to disturbances that affect domestic variables.
publisher Fundação Getúlio Vargas
publishDate 2009
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402009000100005
work_keys_str_mv AT divinojoseangelo monetarypolicyrulesacrossoecdcountries
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