Monetary policy analysis and inflation targeting in a small open economy: a VAR approach*

2001 ◽  
Vol 16 (4) ◽  
pp. 487-520 ◽  
Author(s):  
Tor Jacobson ◽  
Per Jansson ◽  
Anders Vredin ◽  
Anders Warne
Keyword(s):  
Monetary Policy ◽  
Policy Analysis ◽  
Open Economy ◽  
Inflation Targeting ◽  
Small Open Economy

Delegating Optimal Monetary Policy Inertia in a Small-Open Economy

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Daisuke Ida ◽  
Mitsuhiro Okano
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Inflation Targeting ◽  
Small Open Economy ◽  
Central Banks ◽  
New Keynesian ◽  
Closed Economy ◽  
Optimal Monetary Policy ◽  
Nk Model ◽  
Exchange Rate Targeting

AbstractThis paper explores the delegation of several targeting regimes in a small open new Keynesian (NK) model and examines how central banks overcome stabilization bias in a small open NK model. Results indicate that both speed limit and real exchange rate targeting can carry the isomorphic properties of optimal monetary policy over to the closed economy. In addition, neither nominal income growth targeting nor CPI inflation targeting replicates a commitment policy. These findings provide new implications for optimal monetary policy in an open economy.

scholarly journals Monetary Policy Rule and Taylor Principle in Mongolia: GMM and DSGE Approaches

2020 ◽  
Vol 8 (4) ◽  
pp. 71
Author(s):  
Hiroyuki Taguchi ◽  
Ganbayar Gunbileg
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Inflation Targeting ◽  
Generalized Method Of Moments ◽  
Small Open Economy ◽  
Policy Rule ◽  
Dsge Model ◽  
Gmm Estimation ◽  
Monetary Policy Rule ◽  
Dynamic Stochastic

This article aims to examine the monetary policy rule under an inflation targeting in Mongolia with a focus on its conformity to the Taylor principle, through two kinds of approaches: a monetary policy reaction function by the generalized-method-of-moments (GMM) estimation and a New Keynesian dynamic stochastic general equilibrium (DSGE) model with a small open economy version by the Bayesian estimation. The main findings are summarized as follows. First, the GMM estimation identified an inflation-responsive rule fulfilling the Taylor principle in the recent phase of the Mongolian inflation targeting. Second, the DSGE-model estimation endorsed the GMM estimation by producing a consistent outcome on the Mongolian monetary policy rule. Third, the Mongolian rule was estimated to have a weaker response to inflation than the rules of the other emerging Asian adopters of an inflation targeting.

ASSET PRICES, OUTPUT AND MONETARY POLICY IN A SMALL OPEN ECONOMY

2008 ◽  
Vol 59 (4) ◽  
pp. 666-686 ◽  
Author(s):  
Christopher Malikane ◽  
Willi Semmler
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Asset Prices ◽  
Small Open Economy
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