Rule-based Monetary Policy for Developing Countries : Evidence from Developed Countries

Language: English

Published by VDM Verlag Dr. Müller, 2010

3639297636 / 9783639297638

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nach der Bestellung gedruckt Neuware - Printed after ordering - Price and output stabilities determine the success of monetary policy in either economy. This paper briefly examines the monetary policy strategies of three developed countries (USA, UK, Sweden) and three developing countries (Bangladesh, India, Pakistan). It is found that the developed countries follow some rule-based monetary policy whereas the developing countries with ill-organised monetary system do not follow the rule- based policy, rather they often formulate and launch policies under some discretionary framework. The fundamental objective of this study is to examine the performance of rule-based monetary policy in developing countries by extracting experience from developed ones. Since its inception in 1993, Taylor rule has become synonymous to monetary policy. But it is a matter of fact that this rule was grounded on the developed economies and numerous researches have been carried out with the same respect disregarding the applicability of this rule to the developing economies. In this paper, I use one simple macroeconomic model to simulate the economies with the Taylor rule as monetary policy.

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Title
Rule-based Monetary Policy for Developing Countries : Evidence from Developed Countries
Author
Mohammed Saiful Islam
Publisher
VDM Verlag Dr. Müller
Publication year
2010
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
3639297636
ISBN 13
9783639297638
Item weight
106 grams
Dimensions
22.00x15.00x0.30 cm

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