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horizon-dependent biases and lower accuracy than simple unconditional uncertainty forecasts. We examine the inflation …
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This paper seeks to clarify the ways in which inflation targeting corresponds to a policy rule conceptually, and to … assess the extent to which inflation targeters' policy can be described by policy rules in practice. Using central banks …' inflation and output forecasts, the empirical analysis shows that simple forward-looking instrument rules provide a reasonably …
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McCallum (1994a) proposes a monetary rule where policymakers have some tendency to resist rapid changes in exchange rates to explain the forward premium puzzle. We estimate this monetary policy reaction function within the framework of an affine term structure model to find that, contrary to...
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