TY  - JOUR
AU  - Clarida,Richard
AU  - Gali,Jordi
AU  - Gertler,Mark
TI  - Monetary Policy Rules in Practice: Some International Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6254
PY  - 1997
Y2  - November 1997
UR  - http://www.nber.org/papers/w6254
L1  - http://www.nber.org/papers/w6254.pdf
N1  - Author contact info:
Richard H. Clarida
Columbia University
420 West 118th Street
Room 1111, IAB
New York, NY  10027
Tel: 212/854-3676
Fax: 212/854-8059
E-Mail: rhc2@columbia.edu

Jordi Gali
Centre de Recerca en Economia Internacional (CREI)
Ramon Trias Fargas 25
08005 Barcelona
SPAIN
Tel: 011-34-93-5422754
Fax: 011-34-93-5421860
E-Mail: jgali@crei.cat

Mark Gertler
Department of Economics
New York University
269 Mercer Street, 7th Floor
New York, NY 10003
Tel: 212/998-8931
Fax: 212/995-4186
E-Mail: mark.gertler@nyu.edu
M2  - featured in NBER digest on 1998-07-01
AB  - This paper reports estimates of monetary policy reaction functions for two sets of" countries: the G3 (Germany, Japan, and the U.S.) and the E3 (UK, France that since 1979 each of the G3 central banks has pursued an implicit form of inflation targeting which may account for the broad success of monetary policy in those countries over this time" period.  The evidence also suggests that these central banks have been forward looking: they" respond to anticipated inflation as opposed to lagged inflation.  As for the E3 emergence of the influenced by German" monetary policy.  Further, using the Bundesbank's policy rule as a benchmark time of the EMS collapse, interest rates in each of the E3 countries were much higher than" domestic macroeconomic conditions warranted.  Taken all together, the results lend support to" the view that some form of inflation targeting may under certain circumstances be superior to" fixing exchange rates, as a means to gain a nominal anchor for monetary policy."
ER  -