Optimal and efficient monetary policy rules in a forward-looking model

摘要

This paper shows that two monetary policy strategies--hybrid nominal income targeting and strict inflation targeting--are efficient strategies of monetary policy in the sense that they are special cases of the optimal monetary policy strategy. In thecase of a hybrid nominal income targeting strategy, the policymaker chooses a unitary trade-off between real output and the rate of inflation, while under strict inflation targeting the policymaker attaches a zero weight on output in the optimal policyrule.