This paper focuses on monetary and exchange rate policies in Colombia, with particular emphasis over the period 1999-2002, when flotation of the peso/dollar and inflation targeting were adopted. We argue, first, in favor of adopting “operational inflation ranges”, once inflation has been brought down to one digit over the last four years, and, secondly, in favor of strengthening the current sch...

We estimate a model in which fiscal and monetary policy obey the targeting rules of distinct authorities, with potentially different objective functions. find: (1) Time‐consistent fits U.S. time series at least as well instrument‐rules‐based behavior; (2) American policies often do not conform to conventional mix conservative debt‐stabilizing policy, although economic agents expect stabilize de...

In light of the longstanding vision of economic and monetary integration in the ASEAN region and the importance of coordinating monetary policies to achieve it, the objective of this paper is to the assess the monetary policy synchronization among the founding members of the ASEAN, i.e., Indonesia, Malaysia, Philippines, Singapore and Thailand. Due to the importance of exchange rate movements t...

T he key role of government policies in the process of development has long been recognized. The recent availability of quality data has led to quantitative analyses of the effect such policies have on development. Most of the renewed research effort on this front, both theoretical and empirical, has emphasized the relationship between fiscal policy and the paths of development of countries. 1 ...

The papers in this symposium address the issue of multiple equilibria that can be induced by monetary policy in models with capital accumulation. In particular they examine how the “Taylor Principle”, under which interest rates respond more than proportionately to increases in inflation, can generate multiple equilibria. They also explore the design of policies to avoid the problem of multiple ...