Douch, Mohamed; Essadam, Naceur - Volkswirtschaftliche Fakultät, … - 2008
This paper compares the capability of interest rate rules, namely, inflation targeting (IT), price-level targeting (PT) and a combination of the two regime in a hybrid rule (HT) to improve social welfare in a small-open-economy, DSGE-based, New-Keynesian model. Allowing for some inflation...