interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …

countries with low inflation, the raw relationship between average inflation and the growth rate of money is tenuous at best … elasticities implied by theories of Baumol-Tobin and Miller-Orr. Finally, the sample after 1990 shows considerably less inflation … variability, worsening the fit of a one-for-one relationship between money growth and inflation, and generates a fairly low …

open economies, and uses it to assess the effectiveness of Taylor rules and Inflation-Forecast-Based (IFB) rules in … stabilizing variability in output and inflation. Our findings suggest that a simple IFB rule that does not rely upon any direct … estimates of the equilibrium real interest rate and places a relatively high weight on the inflation forecast may perform better …