E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit

• A Comparison of Alternative Monetary Policy Regimes in a Small Dynamic Open-Economy Simulation Model

  Technical Report No. 42 David Longworth, Stephen S. Poloz

  In this paper, the simulation properties of a small, dynamic, open-economy IS-LM-Aggregate Supply model are examined under a variety of alternative policy rule assumptions. These assumptions include rigid money stock, exchange rate and nominal income targets, as well as less rigid policy rules that recognize information limitations. The model that is used consists of four […]

  Content Type(s): Staff research, Technical reports Topic(s): Economic models, Monetary policy framework JEL Code(s): E, E5, E52