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NCCR Publications Reports / Presentations Modelling monetary policy for Bank of Zambia: how effective is inflation targeting?
| Modelling monetary policy for Bank of Zambia: how effective is inflation targeting? |
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| This paper constructs a model representative of Bank of Zambia monetary policy and assesses its effectiveness on liquidity management. Inline with the New Normative Macroeconomics literature (Taylor 1993, 2000; Clarida, Gali & Gertler 1998; 2001, Batini & Turnboll 2003) we develop a short term policy response function, which we believe is the one adopted by Bank of Zambia: a slightly managed float with an inflation stabilising target. Econometric estimates are used to detect the main targets of foreign exchange intervention and to assess the effectiveness of the instruments used with respect the objectives. Draft Modelling monetary policy for Bank of Zambia IP12.2 EB.pdf |
