Testing two types of monetary rules for Brazil

Authors

  • Fabiana Rocha Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade

DOI:

https://doi.org/10.11606/1413-8050/ea217561

Keywords:

rules, discretion, credibility, flexibility, simulation

Abstract

The purpose of this paper is to verify whether, if a monetary rule had been in effect, it would have resulted in smoother non-inflationary nominal GDPpaths over the period 1974.1-1992.111. Two types ofrules are considered. The first is an activist rule proposed by McCallum (1987, 1988), and the second is a non-activist rule proposed by Meltzer (1987). The results ofthe simulations indicate that neither ofthe two rules performed well during the period analyzed.

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References

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Published

1997-06-01

Issue

Section

Papers

How to Cite

Rocha, F. . (1997). Testing two types of monetary rules for Brazil. Economia Aplicada, 1(2), 251-261. https://doi.org/10.11606/1413-8050/ea217561