2006
DOI: 10.2139/ssrn.890671
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Tinbergen Rules the Taylor Rule

Abstract: Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in… Show more

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Cited by 5 publications
(6 citation statements)
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“…Much of the debate has centred on the dual use of the main monetary policy instrument, the short-term interest rate, for achieving both price and financial stability objectives (Issing, 2011). If only one policy instrument is available but two objectives are set, the Tinbergen rule implies that policymakers can only achieve one objective, which, at best, could be a convex combination of the two objectives (Michl, 2006). In this vein, Svensson (2017) has demonstrated the limited effectiveness of the short-term interest rate in ensuring financial stability.…”
Section: Resilience and Taming The Financial Cycle – The Two Objectives Of Macroprudential Policymentioning
confidence: 99%
“…Much of the debate has centred on the dual use of the main monetary policy instrument, the short-term interest rate, for achieving both price and financial stability objectives (Issing, 2011). If only one policy instrument is available but two objectives are set, the Tinbergen rule implies that policymakers can only achieve one objective, which, at best, could be a convex combination of the two objectives (Michl, 2006). In this vein, Svensson (2017) has demonstrated the limited effectiveness of the short-term interest rate in ensuring financial stability.…”
Section: Resilience and Taming The Financial Cycle – The Two Objectives Of Macroprudential Policymentioning
confidence: 99%
“…First, they do not simulate the impact of IT relative to other possible policy regimes, such as targeting the real exchange rate as discussed below. Second)he model is based on esti mates of potential output that are themselves affected by monetary policy (see, for example, Michl, 2007;Tobin, 1980). Hence, if monetary policy slows economic growth, it also lowers the rate or growth of potential output and, therefore, reduces the gap between the two, thereby appearing to stabilize the economy.…”
Section: 2 Macroeconomic Record Of Inflation Targetingmentioning
confidence: 99%
“…27 See also Michl (2006) on the pitfalls of inflation targeting suggested by the Tinbergen principle. 28 Incomes policies are defined in very general terms here as "formal and/or informal institutions that frame and mediate aggregate wage and price setting behaviour in such a way as to reduce conflict over income shares and better reconcile conflicting income claims" (Setterfield, 2007a, p.129).…”
Section: [Figure 2 Goes Here]mentioning
confidence: 99%