Front Matter Page
Research Department
Contents
I. Introduction
II. Simulation Methodology
III. Alternative Policy Rules
1. Uncoordinated rules: money versus nominal income targeting
2. Simple coordinated rules: real and nominal exchange rate targets
IV. Simulation Results
1. The form of the reaction functions
2. Simulations of individual shocks
3. Stochastic simulations
V. Summary and Conclusions
Text Tables
1. Root Mean Square Deviations from Baseline for Various Policy Rules, Historical Shocks
2. Root Mean Square Deviations from Baseline for Various Policy Rules, Generated Shocks 1988-2027
Charts
Appendix I. Reaction Functions
Appendix II. Procedures Used for Simulating MULTIMOD
Appendix Table 1. Estimated Autoregressions, and Standard Error of Innovations, 1974-85
References