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Indicator Variables for Optimal Policy under Asymmetric Information

Svensson, Lars E.O. - 2001

The optimal weights on indicators in models with partial information about the state of the economy and forward-looking variables are derived and interpreted, both for equilibria under discretion and under commitment. The private sector is assumed to have information about the state of the...

Persistent link: https://www.econbiz.de/10012470469

Indicator Variables for Optimal Policy

Svensson, Lars E.O. - 2000

The optimal weights on indicators in models with partial information about the state of the economy and forward-looking variables are derived and interpreted, both for equilibria under discretion and under commitment. An example of optimal monetary policy with a partially observable potential...

Persistent link: https://www.econbiz.de/10012470783

Does the P* Model Provide Any Rationale for Monetary Targeting?

Svensson, Lars E.O. - 2000

The so-called P* model is frequently used or referred to in discussions of monetary targeting. This gives the impression that the P* model might provide some rationale for monetary targeting or for the monetary reference value used by the Eurosystem. The P* model implies that inflation is...

Persistent link: https://www.econbiz.de/10012471029

How Should Monetary Policy be Conducted in an Era of Price Stability?

Svensson, Lars E.O. - 2000

) "forecast targeting," and (3) monetary targeting. Both (1) and (3) are found to be inferior to forecast targeting in maintaining …

Persistent link: https://www.econbiz.de/10012471258

Price Stability as a Target for Monetary Policy : Defining and Maintaining Price Stability

Svensson, Lars E.O. - 1999

a commitment to a simple instrument rule (like a Taylor rule), forecast targeting (like inflation-forecast targeting … systematic framework for monetary policy decisions. Such a framework is instead provided by forecast targeting. Forecast … risks to price stability'). By extending mean forecast targeting to distribution forecast targeting, nonlinearity …

Persistent link: https://www.econbiz.de/10012471507

The Equilibrium Degree of Transparency and Control in Monetary Policy

Faust, Jon - 1999

We examine a central bank's endogenous choice of degree of control and degree of transparency, under both commitment and discretion. Under commitment, we find that the deliberate choice of sloppy control is far less likely under a standard central-bank loss function than reported for a less...

Persistent link: https://www.econbiz.de/10012471635

Inflation Targeting as a Monetary Policy Rule

Svensson, Lars E.O. - 1998

The purpose of the paper is to survey and discuss inflation targeting in the context of monetary policy rules. The paper provides a general conceptual discussion of monetary policy rules, attempts to clarify the essential characteristics of inflation targeting, compares inflation targeting to...

Persistent link: https://www.econbiz.de/10012472023

Optimal Inflation Targets, `Conservative' Central Banks, and Linear Inflation Contracts

Svensson, Lars E.O. - 1995

Inflation target regimes (like those of New Zealand, Canada, U.K., Sweden and Finland) are interpreted as having explicit inflation targets and implicit output/unemployment targets. Without output-unemployment persistence delegation of monetary policy to a discretionary instrument-independent...

Persistent link: https://www.econbiz.de/10012473624

The Operation and Collapse of Fixed Exchange Rate Regimes

Garber, Peter M. - 1994

rejected. Later research has reconciled the theory with empirical results by allowing for imperfectly credible exchange rates …

Persistent link: https://www.econbiz.de/10012473928

Monetary Policy with Flexible Exchange Rates and Forward Interest Rates as Indicators

Svensson, Lars E.O. - 1994

In the new situation with flexible exchange rates, monetary policy in Europe will have to rely more on indicators than previously under fixed rates. One of the potential indicators, the forward interest rate curve, can be used to indicate market expectations of the time-paths of future short...

Persistent link: https://www.econbiz.de/10012474301