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A Tale of Two Regimes: Classifying and Revisiting the Monetary Policy Regimes

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  • Wong, Kin Ming
  • Chong, Terence Tai Leung

Abstract

The existing literature on the performance of monetary policy regimes is separate and isolated, with unidentified monetary policy framework for floating rate regime in the exchange rate regime literature and non-inflation targeting regime in the inflation targeting literature. This paper proposes a comprehensive de facto classification of monetary policy regimes based on the behavior of economic variables. The result reveals a non-negligible number of “hidden inflation targeters”, which use inflation targeting monetary policy in the absence of formally announced inflation targets. Based on the classification result, we also document monetary history and stylized facts that are highly consistent to our conventional understandings.

Suggested Citation

  • Wong, Kin Ming & Chong, Terence Tai Leung, 2014. "A Tale of Two Regimes: Classifying and Revisiting the Monetary Policy Regimes," MPRA Paper 75922, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75922
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    Cited by:

    1. Wong, Kin-Ming & Chong, Terence Tai-Leung, 2016. "Does monetary policy matter for trade?," International Economics, Elsevier, vol. 147(C), pages 107-125.
    2. Chong, Terence Tai Leung & Wong, Kin Ming, 2015. "What Should Central Banks Target? Evidence on the Impact of Monetary Policy Regimes on Economic Growth," MPRA Paper 63499, University Library of Munich, Germany.

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    More about this item

    Keywords

    Monetary Policy Regimes; Inflation Targeting; Exchange-rate Targeting;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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