Indirect Convertibility, Inflation Targeting, and Monetary Policy Rules
In this paper the proposal for indirect convertibility (henceforth, IC)] put forward by Greenfield and Yeager (1983, 1989) is reexamined and reinterpreted to show that IC can provide a practical monetary policy rule for central banks currently engaged in inflation targeting. One reason for such a reexamination is the renewal of interest in monetary policy rules, as represented by the recent outpouring of econometric work on (implicit) policy rules [Taylor (1993), McCallum (1999), Poole (1999), and Williams (1999)]. Although the policy rules econometric work has not focused specifically on inflation targeting, further econometric work on monetary rules would benefit from a deeper understanding of the theoretical issues involved and the additional dimension that IC can bring to that analysis. In addition, inflation targeting in its own right continues to command much policy support and IC both promotes that and offers a monetary policy rule of its own.
|Date of creation:||Jun 2000|
|Date of revision:|
|Publication status:||Published: Carleton Economic Papers|
|Contact details of provider:|| Postal: C870 Loeb Building, 1125 Colonel By Drive, Ottawa Ontario, K1S 5B6 Canada|
|Order Information:|| Email: |
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.:
- Selgin, G.A. & White, L.H., 1993.
"How Would the Invisible Hand Handle Money?,"
380e, Georgia - College of Business Administration, Department of Economics.
- John C. Williams, 1999.
"Simple rules for monetary policy,"
Finance and Economics Discussion Series
1999-12, Board of Governors of the Federal Reserve System (U.S.).
- Dowd, Kevin, 1995. "The Mechanics of Indirect Convertibility," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 67-88, February.
- Schnadt, Norbert & Whittaker, John, 1993. "Inflation-Proof Currency? The Feasibility of Variable Commodity Standards," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 214-21, May.
When requesting a correction, please mention this item's handle: RePEc:car:carecp:00-10. 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: (Sabrina Robineau)
If references are entirely missing, you can add them using this form.