Targets, zones, and asymmetries: a flexible nonlinear model of recent UK monetary policy

V Boinet; Christopher Martin

doi:10.1093/oep/gpn008

Targets, zones, and asymmetries: a flexible nonlinear model of recent UK monetary policy

V Boinet, Christopher Martin

Department of Economics

Research output: Contribution to journal › Article › peer-review

18 Citations (SciVal)

Abstract

We estimate a flexible model of the behaviour of UK monetary policymakers in the era of inflation targeting based on a new representation of policymaker's preferences. This enables us to address a range of issues that are beyond the scope of the existing literature. We find a complex relationship between interest rates and inflation: interest rates are passive when inflation is close to the target but there is an increasingly vigorous response as inflation deviates further from the target.

Original language	English
Pages (from-to)	423-439
Number of pages	17
Journal	Oxford Economic Papers
Volume	60
Issue number	3
Early online date	5 Mar 2008
DOIs	https://doi.org/10.1093/oep/gpn008
Publication status	Published - Jul 2008

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Targets, zones, and asymmetries: a flexible nonlinear model of recent UK monetary policy

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