Reis, Ricardo 
ORCID: 0000-0003-4844-9483
(2018)
Preferencia de los bancos centrales por el largo plazo.
Journal Economía Chilena, 21 (2).
pp. 46-81.
Abstract
Central banks have sometimes turned their attention to long-term interest rates as a target or as a diagnosis of policy. This paper describes two historical episodes when this happened—the U.S. in 1942- 51 and the UK in the 1960s—and uses a model of inflation dynamics to evaluate monetary policies that rely on going long. It concludes that these policies for the most part fail to keep inflation under control. A complementary methodological contribution is to re-state the classic problem of monetary policy through interest-rate rules in a continuous-time setting where shocks follow diffusions in order to integrate the endogenous determination of inflation and the term structure of interest rates.
| Item Type: | Article |
|---|---|
| Official URL: | https://ideas.repec.org/s/chb/bcchec.html |
| Additional Information: | © 2018 Central Bank of Chile |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| Date Deposited: | 08 Jan 2021 10:45 |
| Last Modified: | 12 Dec 2024 02:25 |
| URI: | http://eprints.lse.ac.uk/id/eprint/108204 |
Actions (login required)
 |
View Item |
