Rudebusch, G.D.; Svensson, L.E.O. - Institute for International Economic Studies (IIES), … - 1998
Policy rules that are consistent with inflation targeting are examined in a small macroeconometric model of the US … imply implicit instrument rules, may be closer to actual operating procedures of inflation-targeting central banks. WE find … that inflation forecasts are central for good policy rules under inflation targeting. Some simple instrument and targeting …