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Some Thoughts on Monetary Targeting vs. Inflation Targeting Author info | Abstract | Publisher info | Download info | Related research | Statistics Karen Cabos
Michael Funke
Nikolaus A. Siegfried
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We offer some empirical evidence on the likely scale of control and indicator problems surrounding alternative monetary targets and a direct inflation target. The links between monetary policy actions and inflation are estimated in dynamic linear models using the Kalman filter. We compare alternative intermediate-target and final-target monetary strategies using German data from the end of the Bretton Woods system until 1997. The estimation results show that broad money dominates narrow money as an intermediate target, while control problems involved in targeting broad money are larger than for direct inflation targets. Copyright Verein fü Socialpolitik and Blackwell Publishers Ltd 2001.
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Article provided by Blackwell Publishing in its journal German Economic Review .
Volume (Year): 2 (2001)
Issue (Month): 3 (08)
Pages: 219-238
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Handle: RePEc:bla:germec:v:2:y:2001:i:3:p:219-238Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=1465-6485
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Richard Clarida & Jordi Gali & Mark Gertler, 1997.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Dai, Meixing, 2009.
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"The design of a ‘two-pillar’ monetary policy strategy ,"
MPRA Paper
14403, University Library of Munich, Germany, revised Mar 2009.
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"Germany and the Euro Area: Differences in the Transmission Process of Monetary Policy ,"
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1802, Econometric Society, revised 08 Nov 2000.
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Other versions: Karen Cabos & Nikolaus A. Siegfried, 2001.
"Controlling Inflation in Euroland ,"
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20102, Hamburg University, Department of Economics.
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