Monetary policy rules: An approach based on the theory of chaos control

This article explores the relationship between Taylor rules for monetary policy and those derived from chaos control methods. A similar structure of both rule types would theoretically support the stabilizing role of the Taylor rule for the control of inflation, which until now has been based on an...

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Main Authors:	Graciela Chaparro Guevara, Lorenzo Escot
Format:	Article
Language:	English
Published:	Elsevier 2021-09-01
Series:	Results in Control and Optimization
Subjects:	Stabilization Chaos control OGY method Monetary policy Taylor rule
Online Access:	http://www.sciencedirect.com/science/article/pii/S2666720721000230

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spelling	doaj-4f1d1558ddd44607b99655af179e8f412021-09-19T05:01:55ZengElsevierResults in Control and Optimization2666-72072021-09-014100038Monetary policy rules: An approach based on the theory of chaos controlGraciela Chaparro Guevara0Lorenzo Escot1Faculty of Economic and Administrative Sciences, School of Economics, Technological and Pedagogical University of Colombia-UPTC, ColombiaFaculty of Statistical Studies, Complutense University of Madrid, Av Puerta de Hierro, 1, 28040 Madrid, Spain; Corresponding author.This article explores the relationship between Taylor rules for monetary policy and those derived from chaos control methods. A similar structure of both rule types would theoretically support the stabilizing role of the Taylor rule for the control of inflation, which until now has been based on an empirical framework. This link between monetary policy and chaos control rules is illustrated using the OGY method of chaos control, resulting in a control rule that is applied to a monetary model that presents chaotic solutions and becomes stable at an objective equilibrium point with a stable inflation rate.http://www.sciencedirect.com/science/article/pii/S2666720721000230StabilizationChaos controlOGY methodMonetary policyTaylor rule
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Graciela Chaparro Guevara Lorenzo Escot
spellingShingle	Graciela Chaparro Guevara Lorenzo Escot Monetary policy rules: An approach based on the theory of chaos control Results in Control and Optimization Stabilization Chaos control OGY method Monetary policy Taylor rule
author_facet	Graciela Chaparro Guevara Lorenzo Escot
author_sort	Graciela Chaparro Guevara
title	Monetary policy rules: An approach based on the theory of chaos control
title_short	Monetary policy rules: An approach based on the theory of chaos control
title_full	Monetary policy rules: An approach based on the theory of chaos control
title_fullStr	Monetary policy rules: An approach based on the theory of chaos control
title_full_unstemmed	Monetary policy rules: An approach based on the theory of chaos control
title_sort	monetary policy rules: an approach based on the theory of chaos control
publisher	Elsevier
series	Results in Control and Optimization
issn	2666-7207
publishDate	2021-09-01
description	This article explores the relationship between Taylor rules for monetary policy and those derived from chaos control methods. A similar structure of both rule types would theoretically support the stabilizing role of the Taylor rule for the control of inflation, which until now has been based on an empirical framework. This link between monetary policy and chaos control rules is illustrated using the OGY method of chaos control, resulting in a control rule that is applied to a monetary model that presents chaotic solutions and becomes stable at an objective equilibrium point with a stable inflation rate.
topic	Stabilization Chaos control OGY method Monetary policy Taylor rule
url	http://www.sciencedirect.com/science/article/pii/S2666720721000230
work_keys_str_mv	AT gracielachaparroguevara monetarypolicyrulesanapproachbasedonthetheoryofchaoscontrol AT lorenzoescot monetarypolicyrulesanapproachbasedonthetheoryofchaoscontrol
_version_	1717376117356101632

Monetary policy rules: An approach based on the theory of chaos control

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