Showing 1 - 10 of 83
. Deflation subsided by 2005. As soon as inflation appeared to stabilize near a rate of zero, the Bank of Japan rapidly reduced …
Persistent link: https://www.econbiz.de/10010303752
a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone. …
Persistent link: https://www.econbiz.de/10011604054
. Deflation subsided by 2005. As soon as inflation appeared to stabilize near a rate of zero, the Bank of Japan rapidly reduced …
Persistent link: https://www.econbiz.de/10003947449
euro area and Japanese inflation dynamics are best explained by Taylor-style contracts, while Buiter …-Jewitt/Fuhrer-Moore contracts perform somewhat better in fitting U.S. inflation dynamics. We are unable to fit Calvo-style contracts to inflation … backward-looking element. The completed model matches inflation and output dynamics in the United States, the euro area and …
Persistent link: https://www.econbiz.de/10013320199
a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …
Persistent link: https://www.econbiz.de/10013320328
uncertainty: such rules respond to the one- year-ahead inflation forecast and to the current output gap and incorporate a …
Persistent link: https://www.econbiz.de/10010298237
target inflation rates as low as 2 percent. However, the effects of the constraint are non-linear with respect to the … inflation target and produce a quantitatively significant deterioration of the performance of the economy with targets between 0 … and 1 percent. The variability of output increases significantly and that of inflation also rises somewhat. Also, we show …
Persistent link: https://www.econbiz.de/10010298238
In this paper, we study the effectiveness of monetary policy in a severe recession and deflation when nominal interest rates are bounded at zero. We compare two alternative proposals for ameliorating the effect of the zero bound: an exchange-rate peg and price-level targeting. We conduct this...
Persistent link: https://www.econbiz.de/10010298286
inflation and its target, and the gap between output and its potential. Under 'the opportunistic approach to disinflation' a … central bank controls inflation aggressively when inflation is far from its target, but concentrates more on output … stabilization when inflation is close to its target, allowing supply shocks and unforeseen fluctuations in aggregate demand to move …
Persistent link: https://www.econbiz.de/10010298307
This paper investigates the accuracy and heterogeneity of output growth and inflation forecasts during the current and …
Persistent link: https://www.econbiz.de/10010303756