Evolution of price level targeting and inflation targeting
نویسندگان
چکیده
منابع مشابه
Price-level targeting versus inflation targeting over the long-term
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Price level targeting (without base drift) and ination targeting (with base drift) are compared with persistence in output (generated by sticky prices, for instance). Counter to conventional wisdom, price level targeting results in lower short-run ination variability than ination targeting (if output is at least moderately persistent). Price level targeting also eliminates any average inati...
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We construct a dynamic stochastic general equilibrium model to study optimal monetary stabilization policy. Prices are fully exible and money is essential for trade. Our main result is that if the central bank pursues a price-level target, it can control ination expectations and improve welfare by stabilizing short-run shocks to the economy. The optimal policy involves smoothing nominal inter...
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We examine global dynamics under learning in New Keynesian models with price level targeting that is subject to the zero lower bound. The role of forward guidance is analyzed under transparency about the policy rule. Properties of transparent and non-transparent regimes are compared to each other and to the corresponding cases of inflation targeting. Robustness properties for different regimes ...
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ژورنال
عنوان ژورنال: Periodica Polytechnica Social and Management Sciences
سال: 2007
ISSN: 1416-3837,1587-3803
DOI: 10.3311/pp.so.2007-2.05