Optimal Discretionary Monetary Policy in a Model of Asymmetric Central Bank Preferences

By A. R. Nobay, David Peel. 2003

230 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

The Fed's monetary policy rule and U.S. inflation: The case of asymmetric preferences (2007, unknown): “Varian (1974) and Zellner (1986) proposed this functional form in the context of Bayesian econometric analysis while Nobay and Peel (2003) introduced it in the optimal monetary policy literature.3”
Testing Forecast Optimality Under Unknown Loss (2007, unknown): “In fact, as pointed out by Nobay and Peel (2003) and Capistran (2006), there are strong reasons to assume that the Fed has asymmetric loss over forecast errors rather than MSE loss.”
Properties of Optimal Forecasts under Asymmetric Loss and Nonlinearity (2007, background): “Our results are of particular interest due to the revived interest in forecasting and econometric modeling under asymmetric loss, c.f. Christoffersen and Diebold (1996) (1997), Diebold (2004), Granger and Newbold (1986), Granger and Pesaran (2000), Nobay and Peel (2003) and Skouras (2006).”