Monetary Policy Rules and the Persistence of Inflation and Output
AbstractThis paper argues that the parameters of monetary policy rules affect the persistence of inflation and output. Persistence is lower if monetary policy emphasises the price level or if there is an inflation target. A greater emphasis on output increases persistence. There is a simple New Keynesian interpretation of our findings: monetary policy rules affect persistence by affecting real rigidities.
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Bibliographic InfoPaper provided by Economics and Finance Section, School of Social Sciences, Brunel University in its series Public Policy Discussion Papers with number 02-27.
Length: 8 pages
Date of creation: Sep 2002
Date of revision:
Contact details of provider:
Postal: Brunel University, Uxbridge, Middlesex UB8 3PH, UK
Other versions of this item:
- George J. Bratsiotis & Christopher Martin, 2002. "Monetary Policy Rules and the Persistence of Inflation and Output," Economics and Finance Discussion Papers 02-27, Economics and Finance Section, School of Social Sciences, Brunel University.
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