TY  - UNPD
A1  - Levin, Andrew
A1  - Wieland, Volker
A1  - Williams, John C.
T1  - The performance of forecast-based monetary policy rules under model uncertainty
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2003,06
N2  - We investigate the performance of forecast-based monetary policy rules using five macroeconomic models that reflect a wide range of views on aggregate dynamics. We identify the key characteristics of rules that are robust to model uncertainty: such rules respond to the one-year-ahead inflation forecast and to the current output gap and incorporate a substantial degree of policy inertia. In contrast, rules with longer forecast horizons are less robust and are prone to generating indeterminacy. Finally, we identify a robust benchmark rule that performs very well in all five models over a wide range of policy preferences.
T3  - CFS working paper series - 2003, 06 
KW  - inflation forecast targeting
KW  - optimal monetary policy
KW  - Geldpolitik
Y1  - 2003
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4479
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-10130
ER  -