Exchange Rate versus Price Level Targets and Output Stability
研究了央行以利率为工具，在价格水平稳定和汇率稳定两种货币政策目标下，如何影响产出稳定性，并分析了不同经济条件下哪种规则更优。
Two alternative targets for monetary policy are considered: stability of the price level (or the rate of inflation) and stability of the exchange rate. The interest rate is the main instrument of the central bank. Credibility requires low output variability. The advantages of the alternative policy rules from the point of view of output stability are considered in the simplest possible model. Conditions favoring a price level rule are high volatility of aggregate demand, low volatility of aggregate supply, high volatility of the foreign price level, a low price elasticity of aggregate demand, and a high price elasticity of aggregate supply. Copyright 1996 by The editors of the Scandinavian Journal of Economics.