Determining optimal monetary speed limits

The proposal by Walsh (2003) that policy should include a speed limit by having the change in the output gap as an additional term in a Taylor-type rule is shown to be exactly optimal given an appropriate parameterization.

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Year of publication:	2012
Authors:	Blake, Andrew P.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 116.2012, 2, p. 269-271
Publisher:	Elsevier
Subject:	Speed limit rule \| Optimal monetary policy \| Determinacy

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010597212