Монгол Улсын оптималь мөнгөний бодлогын дүрэм

Abstract

In this essay, we proved that the optimal monetary policy rule for Mongolia is the Taylor-rule that including only domestic inflation and
changes in nominal interest rate. However, if the Bank of Mongolia only consider the CPI inflation, then the optimal policy rule form will turn to the total inflation and changes in nominal interest rate. These results are obtained under main results of the previous chapter 1, the current effective policy rule does not include inflation target rate and posterior estimations. The robustness of these results is proved based on the household utility measurements with non-restricted and various substitution elasticity assumptions.