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AN INTERNATIONAL COMPARISON OF EXPERIENCES WITH MONETARY TARGETING: A REACTION FUNCTION APPROACH
Author(s) -
LANEY LEROY O.
Publication year - 1985
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1985.tb00826.x
Subject(s) - discretion , monetary policy , variety (cybernetics) , economics , function (biology) , inflation targeting , monetary economics , macroeconomics , international economics , political science , computer science , biology , artificial intelligence , evolutionary biology , law
Monetary targets have been instituted in major countries for nearly a decade. There has been a rather wide variety of experience with them, both in the control procedures and in the success with which targets have been achieved. This paper presents results of a reaction function investigation into the extent to which elements of discretionary monetary policy remained even under targeting. Generally, targets probably were successful in focusing central bank attention on the long run. But a conclusion here is that distinguishable elements of discretion (as opposed to rule), evidenced by movements in targeted aggregates themselves, were present for several countries, including the United States.