Education: A Better Tomorrow

Abstract

John Taylor’s rule for setting interest rates provides a framework for studying the global monetary policy generated by individual countries pursing their own policy goals. The study reflects the global nature of monetary policy by modeling an aggregate short-term interest rate as a function of measures of worldwide inflation and the GDP gap. Multiple specifications are estimated to correspond to past studies of the U.S. relationships between these variables. The authors find that Taylor rule is a useful tool for characterizing the global monetary environment as his equation provides a good fit to the data in every specification explored by the authors. However, the international response to inflation is slightly less robust despite claims of inflation targeting by the bulk of the larger economies in the sample. (JEL F33)

Introduction

» Read more: International monetary policy: a global Taylor rule

Related posts

• Value Oriented Education
• Monetary policy and long-term interest rates: a survey of empirical literature.
• Is Traditional Education Better Than Technology-Based Education?
• UK Monetary Policy: Does it Work
• Career in Elementary Education – Shaping the Lives of Children