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Inter-forecast monetary policy implementation: fixed-instrument versus MCI-based strategies Author info | Abstract | Publisher info | Download info | Related research | Statistics Ben Hunt (Reserve Bank of New Zealand )
Monetary policy authorities can adjust their instrument at any point in time to achieve their policy objective. In some countries, such as the United States and the United Kingdom, policymakers choose to usually make adjustments only after a formal medium-term inflation forecast. Other countries, like Canada and New Zealand, have used simple inter-forecast strategies to make further instrument adjustments given unexpected developments in the exchange rate. These alternative strategies may be usefully thought of as fixing or banding a measure of "monetary conditions" that is comprised of the exchange rate and a short-term interest rate that is closely linked to the policy instrument. Such measures have come to be referred to as Monetary Conditions Indices (MCI).
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Paper provided by Reserve Bank of New Zealand in its series Reserve Bank of New Zealand Discussion Paper Series with number
G99/1.
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Date of creation: Mar 1999Date of revision:
Handle: RePEc:nzb:nzbdps:1999/01Contact details of provider: Postal: P.O. Box 2498, Wellington Phone: 64 4 471-3767 Fax: 64 4 471-2270 Email: Web page: http://www.rbnz.govt.nz More information through EDIRC
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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.)
Aaron Drew, 2001.
"Lessons from Inflation Targeting in New Zealand ,"
Working Papers Central Bank of Chile
113, Central Bank of Chile.
[Downloadable!]
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