TY - BOOK ID - 84538848 TI - A Monetary Policy Rule for Jamaica PY - 2005 SN - 1462301401 1452776407 1282107097 1451905963 9786613800442 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Inflation KW - Money and Monetary Policy KW - Price Level KW - Deflation KW - Monetary Policy KW - Development Planning and Policy: Trade Policy KW - Factor Movement KW - Foreign Exchange Policy KW - Currency KW - Foreign exchange KW - Macroeconomics KW - Monetary economics KW - Exchange rates KW - Inflation targeting KW - Real exchange rates KW - Exchange rate policy KW - Prices KW - Monetary policy KW - Jamaica UR - https://www.unicat.be/uniCat?func=search&query=sysid:84538848 AB - Since 1996, the Bank of Jamaica (BoJ) has sought to limit changes in the exchange rate for the Jamaican dollar in the context of its efforts to maintain low inflation. However, with a persistently high public sector deficit, real interest rates have remained generally high, which partly explains the slow pace of growth. This paper discusses an alternative monetary policy mix for achieving low variance for inflation and output through the prism of an empirical macroeconomic model. The simulation results suggest that a monetary policy mix that takes into account the impact of policy on both inflation and output achieves lower variance for inflation and output compared with the current policy mix, which tilts somewhat toward exchange rate stabilization. A case, therefore, can be made for the BoJ to move to a soft inflation targeting regime supported by fiscal consolidation. ER -