Series: IMF Working Papers
Author(s): Victor Gaiduch , and Benjamin Hunt
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2000
Keywords: Monetary policy rules, potential output, uncertainty, inflation, nominal interest rate, monetary authority
To achieve their price stability objectives, many monetary authorities use the gap between current and potential output as an indicator of future price pressures. This policy-setting strategy has been criticized be...