Inflation Targeting under Imperfect Knowledge
نویسندگان
چکیده
منابع مشابه
Inflation Targeting under Imperfect Knowledge
A central tenet of inflation targeting is that establishing and maintaining well-anchored inflation expectations are essential. In this paper, we reexamine the role of key elements of the inflation targeting framework towards this end, in the context of an economy where economic agents have an imperfect understanding of the macroeconomic landscape within which the public forms expectations and ...
متن کاملComment on “Imperfect Knowledge, Inflation
This is a very nice paper. The main points are important, the structure is simple and clear, and I find the key arguments persuasive. In my comments I’m going to begin by summarizing the heart of the Orphanides-Williams argument. Then I will locate their paper within the rapidly growing literature on learning and monetary policy. Finally I will return to their paper and offer a number of specif...
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In a New-Keynesian sticky-price model, we study how the gains from commitments depend on their horizon and credibility. Continuously committing just one period ahead captures all the gains available for any strictly positive level of credibility, unless policymakers themselves exclude deviations, in which case a relatively high credibility is required just to capture the majority of these. The ...
متن کاملInflation Targeting under Uncertainty
This paper studies the implications of certain kinds of uncertainty for monetary policy. It first describes the optimum policy rule in a simple model of the transmission mechanism as in Ball and Svensson. It then examines how this rule ought to be modified when there is uncertainty about the parameters, about the time lags, or about the nature of shocks. The paper also discusses the case of a s...
متن کاملFiscal Foundations of Inflation: Imperfect Knowledge
This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. The theory is similar in spirit to, but distinct from, unpleasant monetarist arithmetic and the fiscal theory of the price level. Because the assumption of imperfect knowledge breaks Ricardian equivalence, details of fiscal policy, such as the average scale and composition of the publi...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.910905