Règle de Taylor vs Règle-icm. Application à la zone euro
The 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.
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.:
- Svensson, Lars E.O., 1998.
"Open-Economy Inflation Targeting,"
638, Stockholm University, Institute for International Economic Studies.
- Svensson, L.E.O., 1998. "Open-Economy Inflation Targeting," Papers 638, Stockholm - International Economic Studies.
- Lars E. O. Svensson, 2000. "Open-Economy Inflation Targeting," NBER Working Papers 6545, National Bureau of Economic Research, Inc.
- Svensson, Lars E O, 1998. "Open-Economy Inflation Targeting," CEPR Discussion Papers 1989, C.E.P.R. Discussion Papers.
- P.A. Tinsley, 1993. "Fitting both data and theories: polynomial adjustment costs and error- correction decision rules," Finance and Economics Discussion Series 93-21, Board of Governors of the Federal Reserve System (U.S.).
- Smets, Frank, 2000. "What horizon for price stability," Working Paper Series 0024, European Central Bank.
- John B. Taylor, 2001. "The Role of the Exchange Rate in Monetary-Policy Rules," American Economic Review, American Economic Association, vol. 91(2), pages 263-267, May.
- Julio Rotemberg & Michael Woodford, 1997. "An Optimization-Based Econometric Framework for the Evaluation of Monetary Policy," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 297-361 National Bureau of Economic Research, Inc.
- Jean-Guillaume Sahuc, 2003. "Robust European monetary policy rules," Applied Economics Letters, Taylor & Francis Journals, vol. 10(14), pages 889-894.
- Naug, Bjorn & Nymoen, Ragnar, 1996. " Pricing to Market in a Small Open Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(3), pages 329-50.
When requesting a correction, please mention this item's handle: RePEc:cai:recosp:reco_571_121. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.