The Use and Abuse of Taylor Rules : How Precisely Can We Estimate Them? »
Journal Issue
Volume/Issue: 2005/148
Series: IMF Working Papers
Author(s): Robert Tchaidze , and Alina Carare
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2005
DOI: http://dx.doi.org/10.5089/9781451861679.001
ISBN: 9781451861679
Keywords: central bank, Taylor rules, inflation, monetary policy rules, monetary economics,
This paper draws attention to inconsistencies in estimating simple monetary policy rules and their implications for policy advice. We simulate a macroeconomic model with a backward reaction function similar to Tayl...