Règle de Taylor vs Règle-icm. Application à la zone euro
AbstractThe aim of this article is to determine what is the optimal strategy of central banks (in particular of ecb) towards the exchange rate. According to the optimal monetary policy rules determined from a two-country (ea-usa) hybrid model with rational expectations, monetary authorities have to react to the exchange rate, in addition to the inflation and the output gap. This result confirms the superiority of strategies built around a Monetary Conditions Index (mci) on Taylor rules. Besides, the sensitive analysis of mci-rules according to the nature of shocks does not allow to assert that theses rules imply systematically a conflict of objective in case of real shocks. But the uncertainty which characterizes the equilibrium value of the exchange rate tends to minimize, even to annihilate, the role played by the exchange rate in the optimal monetary policy strategy.Classification JEL : E43, E47, E5.
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Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue économique.
Volume (Year): 57 (2006)
Issue (Month): 1 ()
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Find related papers by JEL classification:
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
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