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Efficiency of the Monetary Policy and Stability of Central Bank Preferences. Empirical Evidence for Peru

Author

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  • Rodriguez Gabriel

    (Universidad of Ottawa and Central Bank of Peru)

Abstract

Following the approach suggested by Favero and Rovelli (2003), I estimate a three-equations system for different sub-samples for Peru. The results indicate that the preferences of the monetary authority have changed between the diffeerent regimes. In particular, the parameter associated to the implicit target of in‡ation has been reduced significantly. The macroeconomic conditions from the side of the aggregate demand have been more favorable than those related to the aggregate supply. The standard deviation of the monetary rule suggests that it has been conducted successfully in the last regime.

Suggested Citation

  • Rodriguez Gabriel, 2007. "Efficiency of the Monetary Policy and Stability of Central Bank Preferences. Empirical Evidence for Peru," Working Papers 2007-008, Banco Central de Reserva del Perú.
    • Handle: RePEc:rbp:wpaper:2007-008
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    References listed on IDEAS

    as
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    4. Favero, Carlo A., 2001. "Applied Macroeconometrics," OUP Catalogue, Oxford University Press, number 9780198296850.
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    7. John B. Taylor, 1999. "Monetary Policy Rules," NBER Books, National Bureau of Economic Research, Inc, number tayl99-1, February.
    8. Whitney Newey & Kenneth West, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
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    Cited by:

    1. Rodríguez,Gabriel, 2008. "Eficiencia de la política monetaria y la estabilidad de las preferencias del Banco Central. Evidencia empírica para el Perú," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 15, pages 9-20.

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    Keywords

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    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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