Constant-interest-rate projections and its indicator properties

Autor:	Luis Rojas, Christian Bustamante
Rok vydání:	2012
Předmět:	Nominal interest rate Macroeconomics Inflation targeting media_common.quotation_subject Small open economy Monetary policy Econometrics Dynamic stochastic general equilibrium Economics Fisher hypothesis Real interest rate Interest rate media_common
DOI:	10.32468/be.696
Popis:	This paper propose indicator variables for the implementation of monetary policy in an inflation targeting regime. Using constant interest rate projections, the notion of a target-compatible interest rate is presented. This variable allows to extract some characteristics that the expected future path of the interest rate have to fulfill in order to be compatible with the target. The specific formulation of the target-compatible interest rate is presented under alternative assumptions over the forecasting horizon (unconditional or conditional forecasts) and the objective of the monetary authority (inflation target or a loss function). The empirical counterpart of the various formulations is shown using a DSGE model for Colombia; a small open economy with an inflation targeting regime.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::65226582c0dcb7bc76ebeaba75dd60ee https://doi.org/10.32468/be.696 Zobrazit plný text záznamu