Conclusion and Outlook
The goal of this study was twofold: to provide a rationale for the use of sterilised interventions in a framework of inflation targeting and to find evidence whether inflation targeting countries use sterilised interventions as an additional monetary policy instrument. Turning again to our simple model of monetary policy we summarise our main findings in the following.
KeywordsExchange Rate Interest Rate Monetary Policy Inflation Target Taylor Rule
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- 166.The following draws on Stock (2001) and Kennedy (1998).Google Scholar