Template-type: ReDIF-Paper 1.0
Author-Name: Luis Alberto Alonso González
Author-Workplace-Name:
 Departamento de Economía Aplicada III (Política Económica). Universidad Complutense de Madrid.
Author-Workplace-Homepage:
 https://www.ucm.es//departamento-de-economia-aplicada,-publica-y-politica
Author-Name: Alfonso Palacio Vera
Author-Workplace-Name:
 Departamento de Economía Aplicada III (Política Económica). Universidad Complutense de Madrid.
Author-Workplace-Homepage:
 https://www.ucm.es//departamento-de-economia-aplicada,-publica-y-politica 
Title: Monetary policy, Taylor´s rule and endogenous fluctuations
Abstract: The paper analyses the dynamic behaviour of an economy when the central bank (CB) implements an inflation targeting 
	regime. For this purpose, a simple macroeconomic model is constructed and subjected to formal dynamic analysis. A first 
	result is that, under certain conditions, the emergence of endogenous oscillations in the economy is a possible scenario. A 
	second implication is that CBs face two main policy dilemmas: (i) the degree of gradualism adopted when setting the level of 
	short-term interest rates and (ii) the desirability or otherwise of raising interest rates as soon as economic indicators 
	suggest the emergence of inflationary pressures.
Keywords:
 Política monetaria; Regla de Taylor.
Length: 19 pages

Creation-Date: 1999 
Number: 99-19
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra99-19.txt
File-URL: https://eprints.ucm.es/id/eprint/6690/1/9919.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:99-19