Dib, Ali; Mendicino, Caterina; Zhang, Yahong - In: Economic Modelling 30 (2013) C, pp. 941-953
How important are the benefits of low price-level uncertainty in the presence of financial shocks? This paper explores the desirability of price-level path targeting in a small open economy with credit frictions à la Bernanke et al. (1999). The model features credit flows and exogenous shocks...