Communicating Monetary Policy Rules
نویسندگان
چکیده
Despite the ubiquity of inflation targeting, central banks communicate their frameworks in a variety ways. No bank explicitly expresses conduct via policy rule, which contrasts with models policy. Central often connect theory practice by publishing forecasts that can, principle, implicitly convey reaction function. We return to this idea show how can achieve gains rule-based without publicly stating specific rule. The approach requires specify an target, tolerance bands, and provide economic projections. When moves outside band, time frame over will within band. communication replicates provides same information as strategy produces natural benchmark for assessing performance. illustrate these features counterfactual monetary history United States.
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2023
ISSN: ['1873-572X', '0014-2921']
DOI: https://doi.org/10.1016/j.euroecorev.2022.104290