Monetary policy games with broad money targets: a linear quadratic control analysis of the U.S. and Japan

Article Abstract:

The effect of monetary policies pursued by the Federal Reserve and the Bank of Japan in both a cooperative and noncooperative equilibrium situation is analyzed. Vector-autoregressive models are used in the analysis along with stochastic linear quadratic functions. Results show that there is no significant difference between the effect of the two equilibria. Furthermore, long-range monetary goals are seen to favorably affect the economic stability of the two countries.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banks (Finance), Economic policy, Central banks, United States. Federal Reserve Board, Bank of Japan

---

The 'laissez faire' bias of managed floating

Article Abstract:

The study of the 'laissez faire' bias of time consistent monetary policy, using two customized, continuous time models of managed floating, showed a marked bias in the first model, wherein the essentials were costly to modify. The second model, wherein the central bank attempted to stabilize exchange rate stability and monetary autonomy, showed that the time consistency hindrance was so difficult that the optimum managed exchange rate was a free float.

Administration of General Economic Programs, Currency Stabilization Programs, Foreign exchange, Currency stabilization

---

Similar abstracts:

• Abstracts: Monetary policy under fixed exchange rates: lessons from the Netherlands, Belgium, and Austria, 1973-1992. Industrial clusters and the competitiveness of the Netherlands: empirical results and conceptual issues
• Abstracts: Financial liberalization and adjustment: the cases of Chile and New Zealand. Optimal monetary policies and policy interdependence in the world economy

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.