NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Nicoletta Batini

Department of Economics
University of Surrey
Guildford
Surrey GU2 7SX
UK
Tel: 44 0 1483 689380
Fax: 44 0 1483 689548

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org

NBER Working Papers and Publications

June 2007Monetary Rules in Emerging Economies with Financial Market Imperfections
with Paul Levine, Joseph Pearlman
in International Dimensions of Monetary Policy , Jordi GalĂ­ and Mark J. Gertler, editors
January 1999Forward-Looking Rules for Monetary Policy
with Andrew Haldane
in Monetary Policy Rules, John B. Taylor, editor
May 1998Forward-Looking Rules for Monetary Policy
with Andrew G. Haldane: w6543
This paper evaluates a class of simple monetary policy rules which feed back from explicit forecasts of future inflation - inflation forecast-based (IFB) rules. These rules aim to mimic current monetary policy practices among the inflation-targeting countries, where policy decisions are based on inflation forecasts. The rules themselves are evaluated using simulations from a small, rational expectations, open-economy macro-model. IFB rules are found to perform well in comparison with other simple rules, such as the Taylor rule. The reasons for this are: first, because they embody the lags in monetary transmission, aligning explicitly the control and the feedback variables of the policymaker; second, because IFB rules are capable of smoothing output by as much as is possible with rules w...

Published: Forward-Looking Rules for Monetary Policy, Nicoletta Batini, Andrew Haldane. in Monetary Policy Rules, Taylor. 1999

 
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