Forward-Looking Rules for Monetary Policy

摘要: This paper evaluates a class of simple policy rules that feed back from expected values future inflation--inflation forecast-based rules. The are assessed by how well they perform when the economy is buffeted combination shocks, whose distribution drawn Bank England forecasting model. It shown inflation confer some real advantages: embody explicitly monetary transmission lags; potentially all information useful for predicting inflation; and can achieve high degree output smoothing. In tests conducted these prove more efficient at minimising variability than standard Taylor rules, almost as fully optimal