Monetary Policy Credibility and the Unemployment-Inflation Tradeoff Some Evidence From 17 Industrial Countries
Using data on long-term interest rates for 17 industrial countries, this paper develops some simple measures of monetary policy credibility and then tests if such measures improve the out-of-sample forecasts of conventional models of the inflation-unemployment process. The results provide some evide...
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Format: | eBook |
Language: | English |
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Washington, D.C.
International Monetary Fund
2002
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Series: | IMF Working Papers
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Collection: | International Monetary Fund - Collection details see MPG.ReNa |
Summary: | Using data on long-term interest rates for 17 industrial countries, this paper develops some simple measures of monetary policy credibility and then tests if such measures improve the out-of-sample forecasts of conventional models of the inflation-unemployment process. The results provide some evidence in favor of the Lucas critique by showing that the short-run unemployment-inflation trade-off tends to improve in countries that are successful in providing low and stable inflation |
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Physical Description: | 39 pages |
ISBN: | 9781451875218 |