This paper estimates and evaluates monetary policy rules within the context of a structural open economy macroeconomic model of the United States under flexible exchange rates. The major result is that a monetary policy rule which stabilizes the rate of growth of nominal GNP receives considerable empirical support. The rule provides a better fit than a number of alternatives, including strict inflation stability, strict output stability, and real exchange rate stabilization. -Author
CITATION STYLE
Papell, D. H. (1989). Monetary policy in the United States under flexible exchange rates. American Economic Review, 79(5), 1106–1116.
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