Suboptimal Equilibria from Nominal GDP Targeting
نویسندگان
چکیده
منابع مشابه
Nominal GDP Targeting for Developing Countries
Interest in nominal GDP (NGDP) targeting has come in the context of large advanced economies. Developing countries are better suited for it, however, in light of big supply shocks and terms of trade shocks, such as monsoon rains and oil import price shocks in the case of India. Under annual inflation targeting (IT), the full impact of adverse supply shocks is felt as lost real GDP. NGDP targeti...
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s from the important role that expectations of future events, such as policy adjustments, play in the problem of time inconsistency. 8 Some analysts argue for rules that adjust another instrument of monetary policy, the monetary base, to keep nominal GDP on target (McCallum 1987, 1988). Interest rate-based rules offer the advantage that they involve little change from the Fed’s current policy-s...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2015
ISSN: 1556-5068
DOI: 10.2139/ssrn.2624828