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This paper examines the relationships between output, prices, interest rates, and M2 using data sets which were available in real time from 1973:1 to 1997:4. The purpose is threefold. First, the paper delineates a potential role for M2 in policymaking. Second, it provides a more accurate basis...
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In inflation targeting (IT) regimes, the Monetary Authority announces an explicit objective, the target for inflation …. However, other objectives that possibly conflict with the inflation goal are present, such as keeping output close to its … inflation targeting really provides a transparent framework for monetary policy. This question is addressed in this paper …
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and does not imply positive average inflation rates in equilibrium. Interestingly, the presence of binding real rate …
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discretionary policy increase even further when inflation is partly determined by lagged inflation in the Phillips curve. These …
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