Abstract
Previous work in monetary policy futures markets under a single policy goal have shown this approach to be effective at eliminating the circularity problem inherent with private-sector targeting strategies. We extend this monetary policy setting framework to a typical multiple goal policy objective: inflation and output stabilization. We also demonstrate how the prices in policy futures markets can help resolve debates over important policy questions.
| Original language | English |
|---|---|
| Pages (from-to) | 45-54 |
| Journal | Journal of Macroeconomics |
| Volume | 32 |
| Issue number | 1 |
| State | Published - 2010 |