Monetary policy, interest rate rules, and inflation targeting: some basic equivalences
Monetary policy in small open economies is typically cast as a choice between an exchange rate anchor (fixed or predetermined exchange rates) and a money anchor (floating exchange rates). Under such regimes, the growth rate of the nominal anchor is set according to the desired long-run inflation rat...
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| Formato: | Artículo |
| Lenguaje: | eng |
| Publicado: |
Banco Central de Chile
2019
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| Acceso en línea: | https://hdl.handle.net/20.500.12580/3631 |
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| Sumario: | Monetary policy in small open economies is typically cast as a choice between an exchange rate anchor (fixed or predetermined exchange rates) and a money anchor (floating exchange rates). Under such regimes, the growth rate of the nominal anchor is set according to the desired long-run inflation rate. After undergoing a not necessarily painless adjustment process, the economy would eventually reach the long-run inflation rate. |
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