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Taylor rules around the world: Mapping monetary policy

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  • El-Shagi, Makram
  • Ma, Yishuo

Abstract

We estimate Taylor rules for 50 inflation targeting countries around the world. We find that adherence to the Taylor principle is an exception at best. Thus, it seems unlikely that using the interest rate as intermediate target is as widespread as the claims of central banks imply.

Suggested Citation

  • El-Shagi, Makram & Ma, Yishuo, 2023. "Taylor rules around the world: Mapping monetary policy," Economics Letters, Elsevier, vol. 232(C).
    • Handle: RePEc:eee:ecolet:v:232:y:2023:i:c:s0165176523003002
    DOI: 10.1016/j.econlet.2023.111275
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    References listed on IDEAS

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    1. Nojković, Aleksandra & Petrović, Pavle, 2015. "Monetary policy rule in inflation targeting emerging European countries: A discrete choice approach," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 577-595.
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    4. George B. Tawadros, 2020. "Does the Reserve Bank of Australia follow a forward-looking nonlinear monetary policy rule?," Applied Economics, Taylor & Francis Journals, vol. 52(12), pages 1395-1408, March.
    5. Teles, Vladimir Kühl & Zaidan, Marta, 2010. "Taylor principle and inflation stability in emerging market countries," Journal of Development Economics, Elsevier, vol. 91(1), pages 180-183, January.
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    More about this item

    Keywords

    Taylor rule; Monetary policy;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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