02212cas a2200313 a 4500 AALejournalIMF008023 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846010 1018-5941 BD-DhAAL BD-DhAAL McCallum, Bennett. Specification of Policy Rules and Performance Measures in Multicountry Simulation Studies / Bennett McCallum. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Much recent analysis of international monetary and fiscal policy issues, such as the choice of an exchange-rate regime or the design of a policy coordination scheme, has been conducted by stochastic simulations with multicountry econometric models. In these studies, it has become standard practice to consider alternative policy rules of a particular form that calls for departures of a policy instrument, from some 'baseline' reference path, that are proportional to deviations of a specified target variable from its own baseline path. The present paper argues, however, that this standard rule form is seriously defective for evaluating such issues because the implied rules (1) often fail to be operational and (2) have associated performance measures that can be misleading in important cases. An example is presented that concerns the international 'assignment problem' of optimally pairing instruments with policy objectives. Mode of access: Internet Policy Authorities imf Policy Authority imf Policy Rule imf Target Variable imf WP imf United States imf IMF Working Papers; Working Paper ; No. 1992/041 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/041/001.1992.issue-041-en.xml IMF e-Library