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Preferencia de los bancos centrales por el largo plazo

Reis, Ricardo (2018) Preferencia de los bancos centrales por el largo plazo. Journal Economía Chilena, 21 (2). pp. 46-81.

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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:
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: 20 Aug 2021 01:10

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