Monetary Policy Objectives in Pakistan: An Empirical Investigation
Published By: Pakistan Institute of Development Economics (PIDE) | Published Date: January, 01 , 2007The Taylor rule (1993) focuses only on two objectives: output and inflation. In practice, the central bank’s loss function (especially in developing countries) contains objectives other than these two, like the interest rate smoothing, exchange rate stabilisation, etc. In this study, the monetary policy reaction function has been estimated, including five objectives for monetary policy as well as controlling for the effect of three other factors.
Author(s): Wasim Shahid Malik | Posted on: Feb 15, 2016 | Views() | Download (188)