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How forward-looking are central banks? Some evidence from their forecasts

  • Michał Brzoza-Brzezina
  • Jacek Kotłowski
  • Agata Miśkowiec

We estimate forward-looking Taylor rules on data from macroeconomic forecasts of three central banks in order to determine the extent to which these banks are forward-looking. We find that all three banks are to some extent forward-looking, albeit to a varying degree. In general, the horizons for inflation seem to be longer than for output. We also find that central banks prefer to concentrate on one particular horizon rather than take into account the whole forecast.

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File URL: http://hdl.handle.net/10.1080/13504851.2012.684780
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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 20 (2013)
Issue (Month): 2 (February)
Pages: 142-146

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Handle: RePEc:taf:apeclt:v:20:y:2013:i:2:p:142-146
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