IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

How Different are Money Supply Rules from Taylor Rules?

Listed author(s):
  • Patrick Minford

    (Cardiff Business School and Centre for Economic Policy Research (CEPR), 90-98 Goswell Road, London EC 1V7RR, United Kingdom)

  • Francesco Perugini

    (Cardiff Business School, Column Drive, Cardiff CF10 3EU, United Kingdom)

  • Naveen Srinivasan

    (Cardiff Business School, Column Drive, Cardiff CF10 3EU, United Kingdom)

In this paper we show that a money supply rule (a Taylor-type rule) and a Taylor rule produce substantial stochastic differences in the behavior of the economy. Hence it remains an open question whether one or other type of central bank behavior does a better job in welfare terms-contrary to a recent study (Clarida et al.1999) which called Taylor rules the ‘modern science of monetary policy’, thereby suggesting that other rules are essentially inferior. We show with illustrative calibration that the rules may produce very different welfare outcomes.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

Volume (Year): 38 (2003)
Issue (Month): 2 (July)
Pages: 157-166

in new window

Handle: RePEc:dse:indecr:v:38:y:2003:i:2:p:157-166
Contact details of provider: Postal:
University of Delhi, Delhi 110 007

Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
Fax: +91-11-7667159
Web page:

More information through EDIRC

Order Information: Web: Email:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:38:y:2003:i:2:p:157-166. 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: (Pami Dua)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.