Many Targets, Many Instruments: Where Do We Stand?
Thank you to the International Monetary Fund for allowing me to take part in what I expect will be a very lively discussion. 1  Only five or six years ago, there wouldn ’ t have been a panel on the “ many instruments ” and “ many targets ” of monetary policy. Before the financial crisis, the focus was on one policy instrument: the short-term policy interest rate. Although central banks did not uniformly rely on a single policy target, many adopted an “ inflation targeting ” framework that, as the name implies, gives a certain preeminence to that one objective. Of course, the Federal Reserve has long been a bit of an outlier in this regard, with its explicit dual mandate of price stability and maximum employment. Still, the discussion might not have gone much beyond “ one instrument and two targets ” if not for the financial crisis and its aftermath, which have presented central banks with great challenges and transformed how we look at this topic. Let me start with a few general observations to get the ball rolling. In terms of the targets, or, more generally, the objectives of policy, I see continuity in the abiding importance of a framework of flexible inflation targeting. By one authoritative account, about twenty-seven countries now operate full-fledged inflation-targeting regimes. 2 The United States is not on this list, but the Federal Reserve has embraced most of the key features of flexible inflation targeting: a commitment to promote low and stable inflation over a longer-term horizon, a predictable monetary policy, and clear and transparent communication. The Federal Open Market Committee (FOMC) struggled for years to formulate an inflation goal that would not seem to give preference to price stability over maximum employment. In January 2012, the committee adopted a “ Statement on Many Targets, Many Instruments: Where Do We Stand?
Monetary Institutions and Macroeconomic Performance in Brazil after the Global Financial Crisis of 2007–2008
This chapter analyses theoretically and empirically the relationship between monetary institutions and macroeconomic performance in Brazil, since the adoption of the Inflation Targeting Regime (ITR) in 1999. First, we present a brief theoretical discussion on the ITR, providing details of the Brazilian experience. Second, we discuss the determinants of inflation in Brazil. Finally, we discuss the main results of the VAR model.
An Optimization Approach to Occupant Safety and Fuel Economy in Vehicle Design
1. Abstract A major challenge in automotive design is the creation of safe vehicles with minimal environmental impact. This study presents a modeling framework for evaluating and optimizing body designs for improved occupant safety and fuel efficiency. Vehicle body mass is considered as the main link between safety and sustainability. The modeling framework includes frontal crash energy absorption, restraint system design and fuel economy. Preliminary results indicate a Pareto-optimal curve between safety and sustainability may exist when other factors are not taken into account. A more complete modeling framework that includes more sophisticated sustainability and safety metrics, cost and other market considerations, is suggested in order to support better design and regulatory decisions. 2. Keywords: Automotive body structures, fuel economy, occupant safety, optimal vehicle design, restraint systems