Suchergebnisse

Gonçalves, Carlos Eduardo Soares: Monetary policy independence and floating exchange rates: what does the Brazilian evidence tell us? - S. 29-35. Palley, Thomas: Escaping the dept constraint on growth: a suggested monetary policy for Brazil. - S. 36-49 Maria Rita Loureiro e Fernando Luiz Abrucio: Política e reformas fiscais no Brasil recente. - S. 50-72

In this article we propose a policy framework for inflation targeting that contains elements of both optimal and simple rules. We use a simple feedback rule for the interest rate to look after monetary policy in the long run whilst using optimal control in the short run to determine appropriate responses to shocks. The composite policy is capable of substantial welfare improvements over using a simple rule alone whilst maintaining tractability. We see the use of such a framework together with a fully specified model as a feasible approach to practical policy design.

This Policy Forum brings together three views on the conduct of monetary policy in Australia. It arose from a submission by Peter Stemp which was refereed in the normal manner for contributed papers. One referee, Stephen Grenville, was prompted to forego his anonymity and to submit a paper addressing similar issues but taking a very different approach on the objectives of monetary policy. The editors asked John Pitchford to comment on both papers. The Grenville and Pitchford papers were edited in the manner used for Policy Forum.