TY - JOUR
T1 - Stability of central bank preferences, macroeconomic shocks, and efficiency of the monetary policy
T2 - Empirical evidence for Canada
AU - Rodríguez, Gabriel
PY - 2008/5
Y1 - 2008/5
N2 - Following the approach suggested by Favero and Rovelli (2002), I estimate a three-equations system for different sub-samples for Canada. The results indicate that the preferences of the monetary authority have changed between the different regimes. In particular, the parameter associated to the implicit target of inflation has been reduced significantly. The macroeconomic conditions from the side of the aggregate demand have been more favourable than those related to the aggregate supply. The SD of the monetary rule suggests that it has been conducted successfully in the last regime.
AB - Following the approach suggested by Favero and Rovelli (2002), I estimate a three-equations system for different sub-samples for Canada. The results indicate that the preferences of the monetary authority have changed between the different regimes. In particular, the parameter associated to the implicit target of inflation has been reduced significantly. The macroeconomic conditions from the side of the aggregate demand have been more favourable than those related to the aggregate supply. The SD of the monetary rule suggests that it has been conducted successfully in the last regime.
UR - http://www.scopus.com/inward/record.url?scp=42549107042&partnerID=8YFLogxK
U2 - 10.1080/13504850600706420
DO - 10.1080/13504850600706420
M3 - Article
AN - SCOPUS:42549107042
SN - 1350-4851
VL - 15
SP - 437
EP - 441
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 6
ER -