Optimal Taylor rule in the new era central banking perspective
The Taylor rule is a simple monetary policy rule that specifies how central banks should adjust policy interest rate in response to inflation deviation and output gap. However, with the change in the central role of central banks in the economy after the 2008 global crisis, alternative monetary poli...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2020-03-01
|
| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1445.pdf
|
| Summary: | The Taylor rule is a simple monetary policy rule that specifies how central banks should
adjust policy interest rate in response to inflation deviation and output gap. However, with the
change in the central role of central banks in the economy after the 2008 global crisis, alternative
monetary policy implementations have been brought to the agenda. In this study, the optimal
interest of the Taylor rule in terms of interest rate approaching zero and macro prudential policy
developed to regulate the financial system and prevent imbalances in the real sector after the
global crisis is discussed in theoretical terms. |
|---|---|
| ISSN: | 1841-8678 1844-0029 |