American Economic Review Vol. 79 No. 5 1989
Monetary Policy in the United States Under Flexible Exchange Rates
Abstract
This paper estimates and evaluates monetary policy rules within the context of a structural open economy macroeconomic model of the United States under flexible exchange rates. The major result is that a monetary policy rule which stabilizes the rate of growth of nominal GNP receives considerable empirical support. The rule provides a better fit than a number of alternatives, including strict inflation stability, strict output stability, and real exchange rate stabilization.
- Volume
- 79
- Issue
- 5
- Pages
- 1106-1116
- Sources
- bibtex:phds-export.bib