TY  - JOUR
AU  - Rudebusch,Glenn D.
AU  - Svensson,Lars E. O.
TI  - Policy Rules for Inflation Targeting
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6512
PY  - 1998
Y2  - April 1998
UR  - http://www.nber.org/papers/w6512
L1  - http://www.nber.org/papers/w6512.pdf
N1  - Author contact info:
Glenn Rudebusch
Federal Reserve Bank of San Francisco
Economic Research, MS 1130
101 Market Street
San Francisco, CA  94105-9967
Tel: 415-974-3173
E-Mail: glenn.rudebusch@sf.frb.org

Lars E.O. Svensson
Sveriges Riksbank
SE-103 37 Stockholm
SWEDEN
Tel: +46 8 787 0107
Fax: +46 8 21 0531
E-Mail: lars.svensson@iies.su.se
M1  - published as Glenn Rudebusch, Lars E.O. Svensson. "Policy Rules for Inflation Targeting," in John B. Taylor, editor, "Monetary Policy Rules" University of Chicago Press (1999)

AB  - Policy rules that are consistent with inflation targeting are examined in a small macroeconomic model of the US economy.  We compare the properties and outcomes of explicit  instrument rules' as well as  targeting rules.'  The latter, which 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 rules do remarkably well relative to the optimal rule; others, including some that are often used as representing inflation targeting, do less well.
ER  -