We consider the properties of two monetary policy rules ("strict inflation targeting", "constant money growth rule") in … nominal terms. Under a constant money growth rule which allows for temporary deviations of inflation from target in response … contrast, a policy of strict inflation targeting implements the target inflation rate also outside the steady state and …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal …

Since the 2001 recession, average core inflation has been below the Federal Reserve's 2% target. This deflationary bias … corrects the bias and brings inflation back on target. Adopting this asymmetric rule improves welfare and reduces the risk of …

-state real interest rate is independent of inflation. If this is the case, there exists in our model a unique steady state with … terms of the 'activeness' of the interest rate feedback on inflation. This is ruled out under monetary targeting. … monetären und fiskalischen Regime der langfristige Realzins unabhängig von der Inflationsrate ist. Wenn dies der Fall ist …

combination of inflation targeting and monetary targeting. Well conceived monetary targeting with a commitment to a long-run money … growth rate corresponding to inflation target could reinforce the credibility of central bank announcements and the role of … inflation target as strong and credible nominal anchor for private inflation expectations. However, an inflation …

sectors, this paper investigates the performance of inflation targeting and price-level targeting when the zero lower bound on … hitting the lower bound is lower under price-level targeting than inflation targeting, with 'lower bound episodes' being less …-level targeting than inflation targeting. Third, the lower frequency and severity of lower bound episodes under price-level targeting …

In this paper redistribution policy is analyzed in a 2-period overlapping generations model with heterogeneous …

This paper analyzes intergenerational redistribution in a 2-period overlapping- generations model that allows for … political economy equilibrium is not Pareto-efficient. Redistribution results in equal consumption levels of individuals with …