Since 2014
Microfoundations of a monetary policy, Poole's rule
Journal of Economics Bibliography
View Archive Info| Field | Value | |
| Title |
Microfoundations of a monetary policy, Poole's rule
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| Creator |
VALDIVIA CORIA, Joab Dan; Analyst in Macrosectorial Research of the Central Bank of Bolivia: joab_dan@hotmail.com , jvaldivia@bcb.gob.bo
VALDIVIA CORIA, Daney David; Tax Challenge Authority: ddvcecon@gmail.com |
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| Subject |
Poole's Rule; Taylor's Rule; MacCallum's Rule; Dynamic Stochastic General Equilibrium Model (DSGE); Bayesian Estimation.
E51; E60; E61. |
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| Description |
Abstract. The monetary policy framework of many countries has been developed under an Inflation Targeting Framework, which is a fixed central bank interest rate. The well-known Taylor's Rule is the rule of monetary policy applied in empirical evidence for the mode of transmission mechanisms of the Central Bank. Microfoundations in Log-linear terms are consistent in line with Kranz (2015), however countries such as: China, Nigeria, Bolivia, Yemen, Suriname, among others, are in a different framework, control of the money supply (the IMF defines as Monetary Objective Aggregate). The MacCallum's Rule proposed in the 1980s would be more appropriate to describe the transmission mechanisms of monetary policy in this type of policy. But in the present investigation it is based on a monetary policy rule different from the conventional ones. Thanks to the contribution of William Poole in 1970, our Policy Rule explains that the money supply reacts to the behavior of five (5) variables: product gap, interest rate gap, observed interest rate, product expectations and inflation; for what we call this instrument the Poole's Rule. Through a Dynamic Stochastic General Equilibrium Model (DSGE) we check if said rule is appropriate for economies under a different Inflation Targeting Framework.Keywords. Poole's Rule, Taylor's Rule, MacCallum's Rule, Dynamic Stochastic General Equilibrium Model (DSGE), Bayesian Estimation.JEL. E51, E60, E61.
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| Publisher |
Journal of Economics Bibliography
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| Contributor |
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| Date |
2019-09-20
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.kspjournals.org/index.php/JEB/article/view/1923
10.1453/jeb.v6i3.1923 |
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| Source |
Journal of Economics Bibliography; Vol 6, No 3 (2019): September; 118-160
2149-2387 |
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| Language |
eng
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| Relation |
http://www.kspjournals.org/index.php/JEB/article/view/1923/1976
http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/1923/1000 http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/1923/1001 http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/1923/1002 http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/1923/1003 |
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| Rights |
Copyright (c) 2019 Journal of Economics Bibliography
http://creativecommons.org/licenses/by-nc/4.0 |
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