Theoretical Analysis of Monetary Policy Rules: A Review of Some Simple Rules
ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, vol.3, no.1, pp.11-26, 2008 (ESCI, TRDizin)
- Publication Type: Article / Review
- Volume: 3 Issue: 1
- Publication Date: 2008
- Journal Name: ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES
- Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
- Page Numbers: pp.11-26
- Keywords: Monetary policy rule, Taylor rule, monetary conditions index
- Anadolu University Affiliated: Yes
Abstract
What is the appropriate framework conduction of monetary policy? This question constituted economic literature on mainly between use of rules or for reliance on discretion debate over the conduction of monetary policy. Recently, many of economists agree on the use of policy rules to achieve better economic performance than discretionary policy. In spite of the disagreement an agreement about which rule is the best, the studies have shown that the ideal rule of monetary policy should be simple, predictable, credible, flexible and well defined.