This paper analyses the effects of commodity price shocks in a new Keynesian model. The focus is on the central bank's choice of inflation target and the degree of real wage rigidity. It turns out that using core inflation rather than headline inflation is the superior strategy. Targeting...

Die Autoren analysieren wie sich unterschiedliche Inflationsziele und Reallohnrigiditäten auf die Transmission von Rohstoffpreisschocks auswirken. Es zeigt sich, dass eine geldpolitische Strategie mit einem Kerninflationsziel einer Strategie, die das Inflationsziel an der Gesamtinflationsrate...

Against the background of the dramatic changes in the prices of oil and other raw materials in the recent past, this paper analyses the effects of commodity price shocks in a New Keynesian model. The focus is on the central bank's choice of inflation target and the degree of real wage rigidity....

In this paper we analyse to what extent movements in oil prices can help to explain business cycle fluctuations in Germany.We proceed in several steps:As a starting point we use a standard real business cycle model for the German economy and introduce energy as an additional factor in the...

In this paper we analyse to what extent movements in oil prices can help to explain business cycle fluctuations in Germany. We proceed in several steps: As a starting point we use a standard real business cycle model for the German economy and introduce energy as an additional factor in the...