Are policy rules better than the discretionary system in Taiwan?

This article investigates whether the Central Bank of China in Taiwan (CBC) would have had a more successful monetary policy during the period 1978:3 to 1999:4 if it had followed an optimal rule rather than the discretionary policies that were actually employed. The article examines the use of three...

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Publicado en:Contemporary Economic Policy Vol. 20; no. 1; pp. 60 - 72
Autores principales: Cover, James Peery, Hueng, C. James, Yau, Ruey
Formato: Artículo
Publicado: Wiley-Blackwell January 2002
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Are policy rules better than the discretionary system in Taiwan?
      aug:
        au:
          Cover, James Peery
          Hueng, C. James
          Yau, Ruey
      su:
        Central Bank of China (Company)
        Gross national product
        Price inflation
        Monetary policy
        Taiwan
      sug:
        subj:
          Taiwan
          Central Bank of China (Company)
          Gross national product
          Price inflation
          Monetary policy
      ab: This article investigates whether the Central Bank of China in Taiwan (CBC) would have had a more successful monetary policy during the period 1978:3 to 1999:4 if it had followed an optimal rule rather than the discretionary policies that were actually employed. The article examines the use of three different instruments—the rediscount rate, M2, and reserve money—with several different targets—the growth rate of nominal output, inflation, the percentage change in the exchange rate, and the growth rate of a monetary aggregate. Only 4 of 64 rules considered resulted in a statistically significant improvement in the performance of the Taiwanese economy. Given that this study analyzes the economy of Taiwan with revised data that were not available to the CBC in real time, and given that so few of the rules would have improved the economy's performance, it is concluded that the performance of the CBC has been very good. Reprinted by permission of the publisher.
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    language: English
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