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Targeting inflation: Comparative control exercises on models of the UK economy
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UNSPECIFIED (1996) Targeting inflation: Comparative control exercises on models of the UK economy. ECONOMIC MODELLING, 13 (2). pp. 169-184.
Research output not available from this repository, contact author.Abstract
This article presents a comparative control exercise on four leading large-scale models of the UK economy. The target is the reduction of inflation; the policy instrument is the short-term interest rate. Within a standardized experimental design full numerical optimization or feedback control rules are employed as appropriate. An important distinction between models is whether expectations, particularly concerning exchange rate behaviour, are treated in a backward-looking or forward-looking manner. Only the model that adopts the rational expectations hypothesis comes close to satisfying the theoretical proposition that the inflation rate should be changeable without altering any real magnitude.
| Item Type: | Journal Article | ||||
|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions | ||||
| Journal or Publication Title: | ECONOMIC MODELLING | ||||
| Publisher: | BUTTERWORTH-HEINEMANN LTD | ||||
| ISSN: | 0264-9993 | ||||
| Official Date: | April 1996 | ||||
| Dates: |
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| Volume: | 13 | ||||
| Number: | 2 | ||||
| Number of Pages: | 16 | ||||
| Page Range: | pp. 169-184 | ||||
| Publication Status: | Published |
Data sourced from Thomson Reuters' Web of Knowledge
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