Ma, Y.——Economic Systems: Nonlinear Monetary Policy and Macroeconomic Stabilization in Emerging Market Economies
时间:2016-07-01
This paper provides a new approach to investigate monetary policy nonlinearities within a micro-founded DSGE model by incorporating a transition function into the traditional Taylor rule. The model is estimated using the Bayesian method for the Chinese economy over the period 1998鈥2013. The empirical results show that the central bank of China actually adopts a nonlinear Taylor rule and pursues an inflation target zone of [1%, 5%] rather than sticking to a rigid target. Further results from impu