Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
Working Paper Series
Eurosystem monetary targeting: lessons from U.S. data.
Glenn D. Rudebusch
Lars E.O. Svensson
Using a small empirical model of inflation, output, and money estimated on U.S. data, we compare the relative performance of monetary targeting and inflation targeting. The results show that monetary targeting would be quite inefficient, with both higher inflation and output variability. This is true even with a deterministic money demand formulation. In this framework, there is thus no support for the prominent role given to money growth in the Eurosystem's monetary policy strategy.

Download Full text
Bibliographic information
Glenn D. Rudebusch & Lars E.O. Svensson, Eurosystem monetary targeting: lessons from U.S. data., Working Paper Series 99-13, Federal Reserve Bank of San Francisco, 1999.
More from this series
JEL Classification:
Subject headings:
Keywords: Monetary policy ; Europe
For corrections, contact Diane Rosenberger ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal