• An Empirical Test on the Applicability of Taylor Rule Contained Exchange Rate in China   [MASS 2012]
  • Author(s)
  • Bing Lv, Guosong Wang
  • Based on the quarterly statistics during 2001 to 2011, the paper comparatively analyze the applicability of the original Taylor Rule and the Taylor Rule contained exchange rate, the applicability of the Taylor Rule contained exchange rate before and after the exchange rate system reform in 2005. The empirical test turn out that Taylor rule contained exchange can increase its applicability in China; the Taylor Rule is more applicable to China after the exchange rate system reform.
  • Taylor Rule; exchange rate; output gap; inflation rate
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