How forward-looking are central banks? Some evidence from their forecasts

We estimate forward-looking Taylor rules on data from macroeconomic forecasts of three central banks in order to determine the extent to which these banks are forward-looking. We find that all three banks are to some extent forward-looking, albeit to a varying degree. In general, the horizons for inflation seem to be longer than for output. We also find that central banks prefer to concentrate on one particular horizon rather than take into account the whole forecast.

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Year of publication:	2013
Authors:	Brzoza-Brzezina, Michał ; Kotłowski, Jacek ; Miśkowiec, Agata
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 20.2013, 2, p. 142-146
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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