Tinbergen rule

E200968

The Tinbergen rule is an economic principle stating that achieving a set of independent policy targets requires at least an equal number of independent policy instruments.

All labels observed (1)

Label Occurrences
Tinbergen rule canonical 2

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Statements (45)

Predicate Object
instanceOf economic principle
policy rule
appliesTo exchange rate policy
fiscal policy design
macroeconomic stabilization policy
monetary policy design
multi-objective policy problems
assumes independence of policy instruments
independence of policy targets
well-defined policy transmission mechanisms
basedOnWorkOf Jan Tinbergen
category economic policy rules
macroeconomic theory concepts
constraintOn design of fixed exchange rate systems
design of monetary policy regimes
number of policy targets
contrastsWith policy approaches that ignore instrument limitations
coreIdea each independent policy target requires at least one independent policy instrument
describes relationship between policy instruments and policy targets
field economic policy
fiscal policy analysis
macroeconomics
monetary economics
historicalContext developed in mid-20th century macroeconomic policy analysis
implies need to increase number of instruments to achieve additional independent targets
need to prioritize policy objectives when instruments are limited
overambitious policy targets are infeasible with too few instruments
policy makers cannot independently control more targets than instruments
influenced central bank mandate design
modern macroeconomic policy frameworks
multi-mandate central banks
namedAfter Jan Tinbergen
relatedTo Mundell assignment rule
instrument independence
macroeconomic policy coordination
policy consistency
policy effectiveness
target-instrument framework
states number of independent policy instruments must be at least as large as number of independent policy targets
teaches importance of matching instruments to objectives in policy design
usedIn design of optimal policy frameworks
development economics policy design
international macroeconomics
macroeconomic modeling
policy assignment problem

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Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.