Universidad Complutense de Madrid
E-Prints Complutense

Monetary policy, Taylor's rule and endogenous fluctuations

Impacto

Downloads

Downloads per month over past year



Alonso González, Luis Alberto and Palacio Vera, Alfonso (1999) Monetary policy, Taylor's rule and endogenous fluctuations. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 19, 1999, ISSN: 2255-5471 ]

[img]
Preview
PDF
Creative Commons Attribution Non-commercial Share Alike.

380kB

Official URL: http://eprints.ucm.es/6690/




Abstract

The paper analyses the dynamic behaviour of an economy when the central bank (CB) implements an inflation targeting regime. For this purpose, a simple macroeconomic model is constructed and subjected to formal dynamic analysis. A first result is that, under certain conditions, the emergence of endogenous oscillations in the economy is a possible scenario. A second implication is that CBs face two main policy dilemmas: (i) the degree of gradualism adopted when setting the level of short-term interest rates and (ii) the desirability or otherwise of raising interest rates as soon as economic indicators suggest the emergence of inflationary pressures.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Política monetaria; Regla de Taylor.
Subjects:
Series Name:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
Volume:1999
Number:19
ID Code:6690
Deposited On:30 Nov 2007
Last Modified:04 Sep 2015 12:20

Origin of downloads

Repository Staff Only: item control page